Learn How To Save Money
Saving Money Made Simple
Whether it’s your sibling, uncle, co-worker or neighbor, you probably know someone who finds it easy to save money. And you probably grit your teeth every time you think of them because you wish that you were as good at saving money as they were. But you’re not. And with the cost of everything now a days so high, saving money always seems impossible. How do others do it? How do they manage to save money while you are barely able to keep your head above water and live from paycheck to paycheck? Many believe that the answer to that is obvious, right, others must earn more money than you do. But be careful with that idea, that’s not necessarily always the case; sometimes the answer is not how much money you make, but how you handle the money that you make.
If you are not good with money, it’s okay; the good news is that you can learn how to change that. Learning how to save money for a house, a car, your retirement or extra personal expenses is not that hard to do if you understand what financial responsibility is all about. Being financially responsible means being good with money (saving it, not spending it).
Can You Resist Too?
We are all constantly tempted to buy stuff, go places and do things; which is why it is so easy to spend money. And to top it off, credit cards make spending even easier by allowing us to delay the payment for our purchases. So we get caught up in this never ending spending cycle. Sometimes we get so far behind and so deep in debt that we stop trying.
How do savers resist the temptation to spend? What’s their secret? Well for starters there is no secret and it’s not magic. Savers are patient, diligent and goal-oriented. They do not fall for the how to save money fast schemes; they understand that those never work. They keep things simple. They realize that they can’t have it all. They cannot be a saver if they are a big spender. They completely live by the concept that it’s not what you make, it’s what you keep that really counts. Once they set a financial goal (such as saving for a new car) they adjust their spending patterns to achieve that goal. They watch their spending. They live below their means. And you can too.
3 Ways To Save Money
#1 – Check Out Your Spending Habits
Are you tired of living from paycheck to paycheck? Are you fed up with never having enough money to do the things that you want to do? If so, then maybe you are ready to change some of your current spending habits. Good spending habits is one of the best ways to find extra money. When was the last time you checked out your spending habits? Are you ready to start following some different spending habits? Do not worry, you do not have to go “cold-turkey” and make dramatic changes to your spending habits, simple changes can make a big difference. Try some of these:
- buy generic and in bulk when practical
- it’s okay to use coupons, it all adds up
- only buy items when they go on sale, this includes groceries as well as clothes
- comparison shop before you buy anything (especially big ticket items)
- buy your seasonal items at the end of the season (when items go on sale)
- sometimes it’s okay to buy used items instead of new
- the donation of time to your favorite charities is just as valuable as your money
- comparison shop your auto and home insurance premiums every year
- still paying for magazine subscriptions that you don’t read? cancel them
- shop for a cheaper mortgage rate if practical
- discontinue all of your phone service “extra’s”
- discontinue that gym membership (you know, the one you rarely use)
- cancel catalogs that temp you to buy stuff you really do not need
- holiday gifts do not have to always be colossal, remember, it’s the thought that counts
#2 – Avoid Impulsive Buying
Impulsive spending can be expensive. Are you an impulsive spender? Is shopping your entertainment? Do you need instant gratification? Are you the type of shopper that has to have something right now, at all costs? If you want to find extra money you will need to work on your impulsive spending.
- pre-plan your meals for shopping purposes and prepare your shopping lists accordingly
- never go grocery shopping without your shopping list
- only buy what is on that shopping list, if it’s not on the list…it never makes it into the shopping cart
- never go grocery shopping hungry, you will buy more
- save dining out for special occasions instead of every meal
- when dining out, avoid those items that most restaurants over price; such as appetizers, desserts and beverages (alcoholic drinks, soft drinks, coffee)
#3 – Live Below Your Means
If you can live on less than you earn, you will be surprised about how much extra money you will find. This step will require financial discipline. Are you up to the challenge?
- credit card debt is additive, you end up living way beyond your means when you rely upon credit cards
- why pay more for things by tacking on credit card interest charges and fees, avoid credit card debt at all costs
- avoid buying “on-time”, the item you buy is usually worn out by the time you finish paying it off
- racking up credit card debt is not living below your means
- carrying a five, six or sever year car loan is not living below your means either
- avoid extravagance, it is not necessary
- take care of your belongings so you will not have to replace them as often
Obstacles are a part of change. Anytime you try to change your habits you may run into some obstacles; changing your spending habits is no different. You may start out with great intentions, hit a few bumps and feel like giving up; but don’t. If you want to learn how to save money you will need to ride out the bumps. If you fall down, get back up and try again. It’s okay to fall short, the key is to never stop trying.