Saving money, how to approach it and how to KEEP doing it
Saving money is one of the roots to managing money. The popular habit is once people acquire money, they spend it.
Let’s take a few steps into understanding why and how to rectify it.
The First Tool : Knowing Your Limits
If I receive $1400 every second week, I know my limits for the time being. Therefore, one of the thoughts that would help me to save money is setting a certain amount of money every week that I want to put aside.
Let’s say every two weeks I want to save 300 bucks. I know that all I really have to live on for the time being is $1100. If $300 is too much, then change the amount. The important thing is that you are accumulating wealth and allowing it to be added into your life.
The Barrier :
One of the barriers to this solution is already having systems in place that exceed your weekly and monthly living standards. This is how debt accumulates.
Once debt accumulates then you are being controlled by exterior forces, economic norms, problems much like the recent
The Second Tool : Making It Fun
When you make things fun then you are more likely to complete them. So, what would make saving money fun for you ? Here are some examples :
If I save X amount of dollars, then I can....buy myself a TV.
If I save X Amount I will go on a cruise.
The Third Tool : Making It A Goal
In How To Set Goals : We discussed the importance setting a direction for your actions. When deciding to start saving money, there is no difference. Choose a mark to hit in 3, 6 and 12 months. When you reach the goal reward yourself for your discipline.
The Fourth Tool : Finding ways that YOU can save money
In your life there are many things that you do which could be done better. It’s that way for everybody. So what are the many things in your life which you could save money from?
Could you improve in
Impulse buying – To stop buying things without thought Driving with purpose and not just driving, Setting a specific destination when you leave and sticking to it.
Cook at home instead of eating out all the time, Nothing eats money like fast food. Eat at home. Spending Habits – Understanding where and when you spend money and eliminating an area.