3 Saving Habits Simplified
If you want to learn how to build wealth you need to start with the basics. Building wealth is a long, slow, tedious process. Translation: creating wealth is not fast or easy (or even fun for that matter). Always keep in mind that your saving habits will not change by themselves. Nor will they change in a matter of days or weeks; changing a habit takes a bit more time than that. The best way you can start to improve your saving habits is by changing any weak spending habits you may have.
#1 – Embrace Budgeting
If you do not follow a budget or spending plan yet, start, otherwise you really do not know where your money is going. Budgeting tips should always include the advice about being patient with yourself. Budgeting money requires you to take a different perspective, a boring perspective. When you create and follow a budget you are essentially tracking your own spending. Some people find bugdetting to restrictive on their ability to spend money, so they don’t do it. That’s a bad financial move.
#2 – Steer Clear Of Debt
Debt of any kind is a waste of money. The money you waste on debt interest could be used for investing and saving. Even though that’s common knowledge, most folks have a hard time breaking away from debt. The worst debt is credit card debt, and yet it’s the one you have most control over. If you pay in cash you can avoid using your credit card. If you get in the habit of only buying on a need vs want basis, you can more easily avoid using credit cards. Car loans and mortgage debt is harder to eliminate of course, but if you can limit your credit card debt you will be able to save money.
#3 – Spend Less Than You Make
Another no brainer but easier said than done. This step will take some self-training; but if you master living on less than your paycheck you will be way ahead financially speaking. Take it slow and ease into it, otherwise you will become discouraged and throw in the towel. Living on less than you earn will help you avoid debt and have money to invest. This step fits nicely with budgeting.
Change is hard; changing money habits is even harder. But if you create your own plan you will be more inclined to stick with that plan until you achieve your desired results.