You know that having savings has a lot of benefits but developing a habit for doing is easier said than done especially when you live from one pay cheque to the next. Moreover, there are things you want to buy or do which could require a huge amount of money. This could be a new car, a holiday, or even your own wedding day.

While you can always borrow money to pay for these things, it often comes with interest. The best way is to avoid going into a financial hole, is to save. Being able to pay in cash will always give the best deal.

According to popular studies, it takes about 21 days to form a habit. Here are seven steps that can help you develop the habit of saving.

How To Develop The Habit of Saving

1. Write your goal.

Write the exact amount you’re aiming to save and what it is for. This could range from an emergency fund, or college education, or simply a new pair of shoes. Choose only one goal and be specific. Don’t overwhelm yourself by listing too many goals all at once. It’s easier to create a new habit by starting small and focused.

2. Record your cash flow.

Know what comes in and what goes out of your wallet. Determine how much net income you’re earning in each month and how much is spent. Write all your major and minor expenses in a notebook or use an app to easily track them down. Consider using your credit card or bank statements to help you with this. If you bank online, you may be able to filter your statements to easily break down your spending.

Calculate your rent or mortgage, utilities, phone and internet, food, fuel, public transport, credit card bills and other entertainment activities. If you’re spending, as much as, or more than what you’re earning you’re in danger of spiralling into debt. This would be a major roadblock to your capacity to save. You have to establish the habit of spending less than you earn.

3. Make your spending plan (budget).

Once you determine what your cash flow looks like, identify the areas where you can save money. If you don’t have any surplus after paying all your expenses, you will need to decide where you can make cuts so as to start saving some money.

Commit to how much you will save each month so you will know exactly when you’ll reach your goal. If you set aside $25 a week it will take 20 weeks, or about 5 months, to save $500. Once you decide on how much you want to save, create a budget that matches your income so as to prevent overspending.

4. Start saving and automate it.

Apply your spending plan. Instead of saving from what is left over at the end of the month, set aside your savings first. If you’re doing online banking, make this savings amount an automatic payments into a dedicated savings account.

A lot of banks let you automatically pay bills. This service is usually free and once it’s set up paying becomes less of a hassle. It’s a great way to save money since you don’t have to think about it and it reduces the temptation to spend the money.

5. Live within your means.

Spend only the money you have. Even if your own credit card allows you, don’t purchase an item if you don’t have the money for it in your bank account. Credit cards tempt you and trick you into thinking you have the money when you don’t. Before you know it, you’re stuck paying back debt that often comes with painful interest.

Practice delayed gratification. If you see something online or at the store that’s on sale, it doesn’t mean you have to buy it. If you get excited with a product, don’t buy it right away. Get out of the store and think about it first. Sleep on it. You’ll notice that your level of excitement and interest isn’t as much as it was when you first saw the product.

6. Be content with what you already have.

Resist the desire to upgrade. Don’t fall quickly into every sales pitch. Learning to be happy with the things you already have will save you an incredible amount of money. Sometimes, what you have is still enough and still works fine. Don’t get caught up in having the latest and greatest gadgets.

A lot of advertising today are very effective in creating demand for what you don’t really need. Do you really need to have a new smartphone? Do you really need to subscribe to that streaming service? If not, you might as well add the money to your savings.

7. Check your progress.

Make a regular check on your account balance to see how much you’ve saved and how far away you are from your goal. This not only gives you an idea of whether your still on track, it will also be your main source of motivation. Seeing how much you’ve managed to save in several months can be a wonderful confidence booster, and may even inspire you to increase the size of your savings.

Remember, anything worthwhile can be difficult at first. When it comes to developing a savings habit, discipline is the key and you’ll be rewarded if you stick with it.