Step 4: Shhh! Tell Everyone the Secrets to Saving Wisely

Journey to Financial Freedom

Photo by Saheed Karimi - Unsplash

Saving money can feel like a mystery - something everyone knows they should do, but few truly master despite our best efforts. In this blog, we’re spilling the secrets to saving wisely and consistently, so you can take control of your finances without feeling overwhelmed. We’ll uncover what really happens when we lose focus and stray from our saving goals, and more importantly, how to bounce back and avoid those all-too-common setbacks. Building strong saving habits takes effort and discipline, especially in the beginning, but trust me, it’s an investment that pays off in more ways than one. Ready to unlock the secrets? Let’s get started.

Motivation and Mindset

The first and most challenging obstacle to overcome is our mindset. We are our own worst enemies. We must decide that we WANT to save money and understand WHY we want to save money. The reasons will vary depending on our situation, but the premise is the same. We have to believe that we can accomplish whatever goal we set for ourselves and make up our minds to commit to that goal. You may need to reset your mindset multiple times throughout your saving journey. That’s ok! When you catch yourself giving up, when the negative thoughts win out, it’s time for a Mindset Reset! How do we do that, you might ask?

1. Repeat an empowering phrase to yourself like, “I can do this." or "Take one day at a time.”

2. Remind yourself of your short-term goal.

3. Get back on the path to saving and put one foot in front of the other.

Motivation is the engine that keeps our saving journey moving forward. Some of us are naturally great at self-motivation, while others need a little extra push - and that’s perfectly okay. The key is to know yourself and understand what truly motivates you, whether it’s a future goal, a financial milestone, or simply the peace of mind that comes with having a cushion. If staying motivated isn’t your strong suit, don’t go it alone. Lean on friends or family for encouragement, use technology like Alexa/Siri reminders or daily words of inspiration, or use budgeting apps and savings trackers to help keep you focused and accountable.

Knowledge acts as the logical voice on our shoulders when our mindset and motivation are not quite where they should be. Who can argue with facts? This gets tricky though, because sometimes, let’s face it, the facts of our financial situation can be pretty bleak. It only seems bleak though, because our brain automatically interprets what the numbers mean to us. For example, maybe we have $10 in our savings account and we are barely making ends meet and only have a few hundred dollars cushion after bills are paid. We are acutely aware of the risks and what it means to us if we can’t make ends meet or save what we want to save. Just for a moment, ignore that emotional side of your brain and look at the numbers. It is possible - and possible is all we need.

The Power of Setting Goals

Another simple but super important secret to saving wisely is goal-setting. Our goal is our mindset’s best friend. We need the goal in order to have something to focus on, something to look forward to and shoot for. This helps give our mindset direction so that it doesn’t wander aimlessly in the forest and forget the path to saving altogether. Setting clear, specific short-term goals gives our savings plan direction without overwhelming us. These goals should be simple and achievable within a day, a week, or at most, a month. 

For example, a short-term goal could be “Don’t go out to eat today” or “Transfer $10 to my savings account this week.” These quick wins help build momentum and keep us motivated. 

At the same time, it’s helpful to have one long-term goal to guide our overall direction, like “Save $1,000 for an emergency fund in the next six months.” You don’t need to focus on this one daily, just let it sit in the background as a reminder of your bigger ‘why’. And don’t forget, you can sharpen your goal-setting skills by practicing in other areas of life, like fitness or personal development. The more you practice, the stronger your savings mindset becomes.

When You Slip, Don’t Quit: Reset, Refocus, Restart

Unless you’re a robot, you will likely succumb to human weakness and stray from your path toward your savings goal at least once. So congratulations, you are human. Many things can lead us astray. The most common reason is - let’s be honest with ourselves - we get distracted by the new shiny thing that stirs up desire and our willpower goes out the window! It could be the smell of our favorite food or coffee. It could be shoes, clothes or something done in the name of self-care where we convince ourselves that we deserve this. Then, before we know it, our savings plan goes off the rails. But have no fear! When we fall down, we get back up and try again! Here are some tips to get you back on the path to saving wisely.

1. Don’t beat yourself up.

Give yourself permission to make mistakes, maintain a positive outlook and keep taking it one day at a time.

2. Be honest about where you went wrong.

Recognize your mistake(s), learn from them, and get back on the path.

3. Reaffirm your short-term goal.

Was it the right goal for you, your personality and your situation? Was it specific and realistic? Revise it if needed.

4. Build a safety net.

Know yourself and what you need to keep a positive, motivated mindset. Enlist support of a friend or family member to help hold you accountable. Put Post-It notes around the house, or set reminders. 

Preventing Saving Set-Backs

Preventing Saving Setbacks is all about setting ourselves up for success by knowing our financial weak spots and staying one step ahead of them. One of the biggest secrets to saving wisely is recognizing the situations that tempt us to spend and deliberately avoiding them. If we know that aimlessly browsing our favorite store often turns into an unplanned shopping spree, we skip the “just looking” trip altogether. Out of sight really can mean out of mind (and wallet). Removing these temptations from our daily routine helps us stay focused on our financial goals. Of course, there may be setbacks we can’t predict or prevent, like unexpected car repairs or medical bills, but most of our saving stumbles come from decisions we can control. By making intentional choices and staying mindful of our spending triggers, we can dodge unnecessary expenses and keep our savings on track.

Small Steps, Big Impact

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Saving money isn’t always easy, but like any new habit, it takes time, consistency, and patience. By following the steps outlined above, you’ll begin building a strong foundation for saving wisely, one small decision at a time. When you hit a bump in the road or make a mistake, don’t let it derail you.

Pause, reset your mindset, revisit your goals, and keep moving forward. The effort you put into saving wisely goes beyond just boosting your bank account. It helps you develop discipline, strengthen your self-control, and build habits that will positively impact many other areas of your life. In the long run, these changes will set you up for lasting financial wellness and overall success.

“He who buys what he does not need steals from himself.” - Swedish Proverb

We want to hear from you! Let us know what challenges you have along your path to saving wisely. Do you have any tips for success that have worked for you? To add a comment, simply sign up to become a site member.