Do you consider yourself to be a spender? Or are you a saver? When it comes to managing your finances, you likely fall into one of the two categories. I would consider myself to be a saver, but I wasn’t always this way! There was a time when I would have categorized myself as a spender. So what changed? I changed some of my money habits to make me into a saver or a recovering spender, I should say. Here are some of the money habits I developed to turn myself into a saver.

5 Money Habits that Will Turn You Into a Saver

 

Create Savings Goals

While stashing away your money in a savings account sounds like an excellent way to save, you are going to be less attached to your savings. Instead of just saving for the future, give your savings a goal. For example, are you saving up for a new home, a vacation, or trying to save up for retirement? Whatever your savings goals are, make them concrete.

One of our savings goals was to pay off our home loan in full. We were able to do that and I think you can too. Find out how!

 

Pay Yourself First

Paying your bills is an essential part of good finances. However, paying yourself is just as important as paying your bills. Sure your lights won’t turn off if you don’t pay yourself, but paying yourself first means you are building up your savings and treating it just like another bill. This will lead to more savings and ensure that you always have enough money to put toward your savings each month.

Don't miss the top 10 worst money myths! See also myth number 3!

 

Learn to Negotiate Your Bills

Negotiating your bills can help you reduce your monthly spending, allowing you to put those savings toward whatever saving goals you’ve set for yourself. Many companies reward loyalty and are willing to work with you to give you a discount or help you get a lower bill. Calling up your credit card company and asking for a lower interest rate or calling your call insurance to see what you can do to lower your premium could save you thousands!

This is something I try to do once a year as part of our personal financial audit. Find out more things you could be doing to save money!

 

Make a Few Frugal Swaps

When it comes to saving money, some of the best ways to do this are making some frugal swaps. First, what are expenses that are important to you and your budget? Then, see if you can find less expensive or free alternatives to these purchases. For example, switch to generic brand options at your grocery store to save on groceries, opt for a cheaper monthly streaming service or cut it out altogether.

 

Recognize Your Bad Money Habits

Just because you don’t go into debt after spending your monthly income doesn’t mean you don’t have bad money habits. The reason you may not have been able to save could very well be that you’re letting your money get away from you and fuel these bad habits. Identify them and even write them down and make them visible. Recognize these for what they are, poor money habits, and work on fixing them.

One of the easiest ways to do this is by keeping track of every penny that is being spent. You don't know where your money is going and how you can cut back until you track your spending. Check out this post for more information!

 

You don’t have to be great with money to start becoming a saver! These small habits will transform your finances and help you start saving, even if you are a spender.

 

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