Most of us will know the pain of saying no to exciting events because we’ve either run out of money or we’re saving for something big in the long term like a house, car or family holiday. While you’ll know this is for the best in the long run, it can feel like you’re letting friends down at the time. This is commonly known as fear of missing out (FOMO) and it’s one of the reasons money can affect mental health.
However, saying no to plans while saving towards your financial goal doesn’t have to happen! There are plenty of ways you can get your finances in order, so you can save the right amount to achieve your goals while having enough disposable income left over to ensure you don’t miss out on life.
If you want to learn how this is possible, our guide can help. Read on to find the best practices for saving while living your life to the max – even in a cost-of-living crisis.
Make sure your saving goals are realistic
When setting your goals of how much you want to save and how long you have to do it, try to be as realistic as possible. If you’re not, then it could stretch your finances significantly, which is when you won’t have any money left for plans with friends.
Set short and long-term goals
If one of your goals is to either get a car or buy a home, then you’ll need to save a lot of money. However, you’ll also need to boost your credit score as well to get a mortgage or finance approval. Boosting your credit score could be a great short-term goal for you, and there are plenty of ways to do it.
Review your spending habits
You may be spending too much on unnecessary items and services, which could get in the way of your saving goals and having fun with your friends. Take a look at what your monthly income is spent on and find ways to cut it down if needed. Some of the easiest ways to do this include:
Make your friends aware of your financial goals
Lastly, we recommend telling your friends about your financial goals and why it means you can’t be doing expensive activities all the time. They will then be more understanding if you can’t make it to every event and they may even start planning free activities, so you can definitely make it. This could be movie nights, trips to the park or a garden BBQ.