Spending money is easy, but saving is difficult.

We have seen many middle-aged people scarcely have savings despite drawing almost five-figure salaries, compared to those in their early 20s having tens of thousands of ringgit saved up, despite drawing much lower monthly paychecks.

How do they do it? It's not rocket science, to be honest. How much you earn does not really dictate how much you can put aside on a monthly basis. It all boils down to how you manage your expenses and leftovers.

You too, can save money if you follow these techniques:

1) Gauge your capability

First of all, you must gauge how much you are capable of putting aside each day. If it's a good month, set aside RM50, or on "dry days", make it a point to put aside at least RM1 every day. Alternatively, you can try the "Green Note" technique, where you are required to save every RM5 you get. Increase the quantum of your savings in tandem with the rise in your income.

2) Jot them down

Self-discipline is important to have a healthy saving habit. You should have a note book to jot down how much you have set aside on a daily, weekly, or monthly basis. The same goes to tracking your income and expenses.
Nowadays, there are even apps which allow you to track your income, expenses, and savings, which you can get to achieve your goals.

3) Get a hard-to-break piggy bank

The title speaks for itself. Getting a piggy bank which can be opened easily is detrimental to a healthy saving habit. This is because it could tempt you to dip your hands into it whenever you are running short of funds. It is better if you use a piggy bank that you have to physically break, to access its contents. That way, you will think multiple times before dipping into your reserves.

4) Don't underestimate coins

Most of us tend to underestimate the power of coins. Saving up coins can make your money grow without you even realizing it. Try and make it a point to save every 50 sen coin you get, for instance, or better still, put aside all the coins you get for savings, and be surprised of how much you have managed to save when you pop open the piggy bank.

5) Cut your spending

One of the most obvious ways you can watch your money grow. That self-brewed coffee or the RM2 'ikat tepi' Nescafe will still give you the caffeine fix you hope to get with the RM15 overpriced latte at your local fancy coffee shop. When possible, try and examine the cost of eating out vs eating at home, and you'd be surprised at how much money you get to save by opting for the latter.

6) Set goals

One of the best ways to save money is by visualizing what you are saving for. This could be for short-term goals such as to have emergency funds, planning for a vacation, or putting downpayment for a car, or or long-term goals like planning for retirement, child's education, downpayment for a house, or home remodelling. There are online calculators that allow you to calculate how much you need to put aside each month, to reach a goal in a stipulated period of time.

The same as everything else in life, miracles do not happen overnight. As the cliched saying goes "sikit-sikit lama-lama jadi bukit", whatever little you put aside today will snowball into something great one day, when you most need it.

So get cracking on these techniques today, and start saving for a better future!

Source: Maskulin, bettermoneyhabits.bankofamerica.com
Photos source: Pexels, istock