How to save money

Save Money - Green ButtonHow to save money? That’s a problem with which many people struggle, constantly. Does that include you? Come on now, be honest.

Are you struggling to gain control of your money? Maybe you just have too many outgoings and not enough income, right? You’d love to save money but that’s a distant dream?

You’d save money but you never have enough left at the end of the month to put something away for a rainy day? It would be different if only you earned more. Then it would be so much easier and you’d take saving money a bit more seriously, right?

Let me just say now, if you feel this way, you’re not alone. I suspect most people feel exactly the same way. Modern living comes with so many social pressures, right?

The problem is though, if you don’t learn to manage your money, you will always be poor. You’ll be making other people rich but you’ll be doomed to constant financial hardship yourself. Now why would anyone want that situation to continue?

Take a careful look at your spending

Right I’ve convinced you that you must change but where do you start? Well have you ever taken a good hard look at your outgoings? That’s a good place to start.

That expensive, fancy coffee you buy everyday on the way into the office. That satellite or cable TV subscription you pay for every month but rarely watch any of the channels. That online clothes shopping you can’t help doing when you’re bored and yet rarely actually wear any of the clothes you’ve bought. Does any of that sound like you?

Eliminate any unnecessary spending now

How much money do you actually spend on things you either don’t use or could live without? How often do you make impulse purchases you never use?

How often do you over-pay for items because you can’t be bothered shopping around or haggling for a better price?

The fact is you don’t need to have a lot of money or have a complicated financial plan to get started on the road to riches. You just need the discipline to manage your money wisely and spend it with care.

Take the first step and eliminate any unnecessary spending immediately.

Pay yourself first

However if you want to save money it’s not just about looking at your spending.

When it comes to saving money, most people only think about that at the end of the month when they’re looking at what they’ve got left from their income.

Usually by the end of the month most people have got little or nothing left from their previous month’s income and are just desperately waiting for their next pay cheque. Hence usually they don’t manage to save anything at all.

However fear not, there is a solution. In fact when it comes to how you save money there is one very simple trick. That trick is to pay yourself first.

The simple art of paying yourself first

So what do I mean by pay yourself first?

Well let’s say your aim is to save 10% of your income each month? And let’s say your income is $1,000 per month. 10% of that is of course $100. So when you get paid each month, you take that $100 from your income and immediately put it into a savings account or some other safe place.

Even better make that transfer automatic. Set up a direct debit or standing order which transfers the 10% of your income to a savings account immediately after you’ve been paid each month.

You won’t miss what you don’t have

If you pay yourself first and make it automatic then it will be just another deduction to your income like taxes and pension contributions. Very quickly you’ll get used to living on what’s left. If it goes automatically then you’ll adapt and won’t miss it.

So to repeat, the trick is simple. Just take a percentage of your income on payday and just save it.

Your savings will grow quickly and then as it grows you can start thinking about other means for long-term investment to build capital.

Choose a lifestyle you can afford

With a slice of your money now somewhere safe, adopt a lifestyle you can afford. One that is consistent with the income you have left. It’s not difficult. Other people do it and so can you.

Ditch the credit cards

Credit cards can be a convenient means for payment but they are also weapons of mass wealth destruction.

Credit card debt is ‘unsecured’ in the jargon of the finance industry. What this mean is that it comes with very high interest rates. In short, unsecured debt is very expensive. And the compound effect of such interest rates can turn a very small sum into a very large sum very quickly.

If you ‘max out’ your card and then only ever pay your minimum payment each month then very quickly you can have a serious debt burden. And the problem with debt is that it enslaves you and it is stressful. And you really don’t need stress.

Surfing the online shopping websites with your flexible friend also tends to encourage you to buy stuff you don’t need. In the process you waste your money and burden yourself with debt. Fun as it might be momentarily, it actually makes very little sense if you sit and think about it.

So ditch the credit cards.

The road to financial freedom

If you want to get started on the road to financial freedom you have to spend less and save more. In paying yourself first, it’s important that you get the best interest rate you can find from a good, solid bank or savings institution. That way you can start to build a capital sum.

As your capital starts to grow then you can start to think about other forms of investments such as stocks and shares, bonds and property. Concentrate on saving money initially but you must learn more about investment too. A good financial education is invaluable.

Whether you’re in your 20s, 30s, 40s, 50s or even older, it’s never too late for you to start saving, you just need to get started. And paying yourself first and controlling your spending are good habits to develop.

Recommended Reading

If you want to improve your financial education then buying some books on the subject for your personal reference library is an important step. Here are three excellent books I can recommend.

Think and Grow Rich by Napoleon Hill

Think and Grow Rich is a classic of the genre. Originally written in the 1930s but still around and still very popular. And it’s still around for a reason. It’s exceptional and definitely worth adding to your personal reference library.

The Richest Man in Babylon by George S. Clason

The Richest Man in Babylon is another classic of the genre. Simple but inspiring. You can read this book in a few hours but it will provide you with a series of powerful lessons for acquiring money, keeping money and making money. Again well worth adding to your personal reference library.

Rich Dad Poor Dad by Robert T. Kiyosaki

Rich Dad Poor Dad is an excellent starting point for anyone seeking to improve their financial knowledge and improve their financial future. This is modern compared to the previous two but it has also become a classic and is well worth the cover price.

I have all of these books in my own personal library and I dip in and out of them frequently. You will be inspired by them all I am sure and I recommend you purchase your own copies now. You can check them out by clicking on the links.

Get started now

Has your journey to financial freedom started yet? The sooner you get started the sooner your personal ‘bunce-o-meter’ will go KA-CHING.

What’s going to stop you?

© Roy J Sutton and Mann Island Media Limited 2017. All Rights Reserved.

(Visited 2 times, 2 visits today)

Speak Your Mind

Show Buttons
Hide Buttons