How to Save Money: 10 Tips to Boost Your Wealth


How to save Money? That’s a question we all ask occasionally. Certainly it’s one to ask if achieving financial freedom is your aim.

Do you have problems saving money?  Does your salary disappear long before your next pay day? Do you experience too much month at the end of the money? Certainly it’s a good idea to put some of your money away each month in order to build a capital sum for the future.

However, that’s easier said than done I can hear you say. How can anyone save money nowadays? That’s a question most people ask frequently.

It isn’t easy but it can be done and it requires determination and financial discipline.  Some people do it, so why not you?

Working for someone else is unlikely to make you rich but, if you have an income, it can provide you with the basis for building wealth. It’s not necessarily about becoming rich. It’s simply about building a capital sum over time which might make your life easier when you’re in need of a large sum of money in the future. That might be to purchase a property when you’re getting married or perhaps when you decide it’s time to retire.

The key thing is to start as early as you possibly can. The earlier you start the more you will benefit from the magic of the compounding effect.

So here are 10 tips to help you start saving your money:-

Tip 1: Pay Yourself First

Each month when you get paid take a percentage of your income, say 10% or whatever is reasonable, and put it away somewhere safe. It will be a bit like tax and other stoppages. Once it’s gone, you get used to managing on what you have left. If it goes at the beginning of the month it’s gone and it’s safe.

Do this each and every month and over time your savings will start to grow faster than you think.

Tip 2: Don’t let expenditure exceed income

Money comes into your hands and then money goes out. You have to make sure that you don’t spend more than you earn. And don’t spend money on stuff you don’t need and probably won’t use.

Tip 3: Make a Budget

Create a budget to cover your basic expenses plus your discretionary expenditure. Limit your discretionary expenditure and stick strictly to your budget. Manage your money properly and you should have something left at the end of the month.

Tip 4: Reduce your expenditure

How often do you buy that expensive coffee on the way to work? Cut out the coffee from Starbucks and the saving over a year can be substantial. If you buy expensive sandwiches from the Deli at lunchtime then you could make another saving by making your own sandwich and taking it to the office with you. ‘Brown bag’ as the Americans say, and that saves money. Again over time the savings will add up.

Tip 5: Ditch the Credit Card

Credit cards can be a convenient means for paying. However they can also be weapons of mass wealth destruction. For a start research studies have shown that people who use their credit cards as a means of payment for every purchase tend to spend more money than people who use cash on average.

Similarly with a credit card it is so easy to spend money you don’t have on things you don’t need both in shops and online.

And if can’t settle you credit card bill in full at the end of the month you’re left with debt and interest payments at extortionate rates. That debt can easily grow to levels which then become difficult to control.

Ditch that credit card and you’ll probably save a lot of money over time.

Tip 6: Downgrade your accommodation

Could you live in a flat or apartment rather than a house? If you live in a big house could you live in a smaller one?

Your lifestyle choices can prove to be expensive. If you want to reduce your expenses then downgrading your accommodation is one way of doing it.

Even a small downgrade can produce a saving which could help in your goal of building a capital sum.

Tip 7: Live without a car.

In some ways life can be easier when you’re mobile. However it comes at a significant cost.

In addition to the capital cost of the car, there is depreciation over time plus the cost of fuel, insurance, maintenance, parking and wear and tear.

The cost of motoring can be high indeed. If you could make do with public transport then you can save a lot of money.

Tip 8: Use Discounts Coupons and Codes

We’re frequently given discount coupons and discount codes but how often do we make full use of them?

Such savings individually may not seem like much but the cumulative effect of this approach can save you a lot of money over time. Never be embarrassed to used discount coupons and codes. Take every opportunity to make savings on your purchases.

Tip 9: Spend Your Money Wisely

How often do we spend our money on stupid stuff? Things we don’t need and/or will never use. Before you buy ask yourself, “Do I really need this item?” and “Will I actually use it?” If your answers are in the negative, or even just probably negative, then don’t waste your money. Save it instead.

Tip 10: Take advantage of tax breaks

Take every opportunity to benefit from tax breaks. Tax evasion is illegal of course but when there is a genuine and honest opportunity to save tax then you should always take advantage of it.

Overall this list of ten tips is by no means comprehensive but these tips will help you save if you are disciplined in your approach to managing your money. So what are you waiting for? Get serious about saving your money now.

If you want to improve your knowledge on how to save money, there are some great books on the subject. Start your financial education right now and buy yourself a couple of decent reference books. And read then, frequently.

If you found this article useful then please share it on social media with your friends.

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© Roy J Sutton and Mann Island Media Limited 2018. All Rights Reserved.

Wealth Creation Strategies

Here is Brian Tracy with some advice on what he sees as the top wealth creation strategies for financial success. Brian is another of my favourite motivational speakers. His messages are simple yet very effective. If you can spare the time, Brian Trace is always worth a listen.

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

What’s the difference between saving and investing?

What’s the difference between saving and investing? A friend recently asked me this question and I thought it was interesting because most people appear to view these terms as two words for the same activity. However this is definitely not the case.

Savings:

Essentially saving is the money you manage to retain from your earnings each month, which you then keep in the bank on deposit. Either this money is surplus to your needs or it is a sum which you have proactively taken from your earnings at the beginning of each month in order to ensure that over time you can begin to build a significant capital sum. If you’re adopting such a proactive approach to saving then give yourself a pat on the back. However, even when money is on deposit, you should be seeking the best interest rate you can find.

Investing:

If you are saving regularly then over time you will start to build a significant sum of money and that’s when you can start thinking about investment. The point of investing is to enhance your wealth; to turbo-charge it if you like. To ensure that your hard earned money works for you and grows over time such that it keeps pace with inflation and attains a high enough rate of return to provide you with some capital growth.

Conclusion:

Investment is a serious approach to managing your wealth, spreading risk and diversifying over various asset classes. Being a saver is good; being an investor is even better.

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

How you develop a Millionaire Mindset: Self-Discipline and Money

Financial success and whether you can achieve it does depend on the way you think about money. How you think about money matters, including the way you look at the debt you incur. You need to develop a millionaire mindset if you want to enjoy financial freedom. Money is a precious resource and you should learn to use it wisely.

We are all brought up from an early age to view money in a certain way and the way we are conditioned by our upbringing tends to stay with us unless we choose to change our thinking. You may have been brought up with poor money habits but that doesn’t mean you can’t change them. You can but it takes some effort from you.

If you are to start winning at the game of money then it starts with getting rid of any false ideas you may have and which may be holding you back. Your mind is a powerful weapon and it can help or hinder you on the road to financial freedom.

So reflect honestly on the way you think about money. Figure out exactly what money means to you and how you want it to affect your future.

What are your financial goals? Can you visualize yourself as prosperous and wealthy? Alternatively do you focus more on the negative aspects of your life, perhaps thinking it will never change?

Negative thoughts beget negative thoughts:

Think negatively about money and you’re unlikely ever to have much of it. Essentially you think of yourself as lacking in value and therefore unworthy of having that pot of gold of your own.

Thinking negative thoughts about your future will result in a future for you that is unexciting at best. It doesn’t have to be but to achieve anything it all starts with positive thinking. No one ever got anywhere with negative thinking.

Money isn’t everything, of course. However it is up there with oxygen for a life worth living. It won’t solve every problem, of course, but it does make living a little more comfortable and agreeable. Money can cause more harm than good on occasions but it can also be a force for good too.

So what do you want for your financial future and what does money mean to you and your life? Figuring that out would be a good start.

You don’t have to be a financial whizz-kid:

Money might seem intimidating at times but it’s actually quite simple. It’s just the way we keep score. Money is the medium through which value is stored. It’s easier than a barter system. We do stuff for other people and we’re paid. We can then spend the money we receive at our own convenience to live our own lives.

Money comes into our lives and money goes out again. The trick is to ensure that money in always exceeds money out. In other words you live within your means. So pay attention to the numbers and check them regularly. This is not complicated mathematics. If you can master basic addition, subtraction and percentages that’s about as complicated as it gets. You don’t need to be a mathematics major.

Your success in managing your money and improving your financial skills will depend on you taking small daily steps to gain control and manage your finances carefully. You don’t need to be a city whizz-kid, you just need to care enough to want to improve your situation.

Just keep at it and don’t give up.

Financial discipline won’t necessarily happen overnight but slow and steady progress can be achieved which will improve your situation over time and help you progress down the road to wealth and financial freedom.

If you are consistent in improving your daily money habits then eventually good money habits will become a part of your routine.

Not allocating the time is certainly a crime:

Managing your money and planning for your financial future doesn’t require a lot of time but it does require some of your time and you must set some time aside regularly to ensure that you don’t lose sight of your second most important resource.

For the record; your most important resource is time. You can always get more money but you can never get more time.

Your financial success will be limited only by the amount of time, dedication, attention and hard work you put into to looking after your money and improving your financial education.

Many of the world’s wealthiest people will tell you they didn’t get rich overnight. Unless they were lucky enough to inherit serious money, wealthy people spent years giving it their all and managing their money wisely.

Achieving financial freedom is a worthy goal for everyone. However it you want to be wealthy you’re going to have to work hard to accomplish your goal and allocate time regularly to keeping track of what you earn, what you save, what you invest and the performance of your investments.

Even if you have more modest goals like becoming debt free or building a nest egg for your retirement, you can’t avoid allocating a little time to the process on a regular basis.

Fail to put in the time and you’ll experience very limited success, if any at all.

Everyone has a choice:

Never assume your situation cannot be improved. It can, albeit it will require effort and discipline from you.

Regardless of your situation now, you do have a choice. You can choose to say, enough is enough. Your life can be better if you choose to make it better.

It really doesn’t matter how many mistakes you’ve made in the past. Your past mindset in relation to money doesn’t matter either. The ability to create a better future for you remains in your hands. All it takes is firstly a vision that your future can be better than your past. Secondly you need the will to start making incremental changes and improving things slowly.

You don’t need to take giant strides and set the world on fire. Small incremental steps are fine as long as you keep heading in the direction of your financial goals.

Your mind is a powerful tool which can make or break your success. Wealthy people, particularly self-made rich people, use what is known as the millionaire mindset. This is simply a way of thinking in relation to money and the building of wealth.

Wealthy people don’t purchase items with unsecured and expensive debt. If they need something they usually save up for it first and then pay with cash for their purchases later.

Ironically they often give money regularly to people less fortunate than themselves too. Helping others can be a virtuous circle. Being kind to others can pay handsome dividends. Everyone really can be a winner.

Conclusion:

Develop a positive mindset in relation to money. You’re as entitled as the next person to create wealth from the value you add. Think positively and you will notice a huge change in your life and your finances. Work on developing a millionaire mindset.

Further Reading:

If you want to develop a millionaire mindset then three books you should read are as follows:-

The Millionaire Mind by Thomas J Stanley

This book explores the ideas, beliefs and behaviour that have enabled millionaires to build and maintain their fortunes. The author uncovers surprising answers, showing what it is that makes the wealthy prosper while others feel dejected and beaten by life. If you have an entrepreneurial mind you’ll find this book interesting. It will provide you with road maps on how millionaires found their niches.

The Millionaire Next Door by Thomas J Stanley & William D Danko

According to this book, almost anyone with a steady job can amass a fortune. The authors suggest that most people have it wrong about how you become wealthy. They suggest that wealth is the result of hard work and living within your means. This book identifies seven traits which people with wealth tend to possess. These traits can be learned it says and if you copy what the wealthy do then you can be wealthy too.

Secrets of the Millionaire Mind by T Harv Eker

In this book you will learn how your childhood influences have shaped your financial destiny. You will also learn how to identify your own money blueprint and revise it not only to create success but, more importantly, to keep and grow your personal wealth. Finally you’ll be introduced to 17 specific ways rich people think and act. These include specific action steps for you to practice in order to increase your income and accumulate wealth. The essential message of this book is that if you think like rich people think and do what rich people do then there’s a very good chance that you will get rich too.

If wealth and achieving financial freedom is your aim then you should read these books. If you’d like to take a closer look at them then click on each of the embedded links above. I strongly recommend that you buy your own copies. I did and they have all proved to be extremely useful to me.

And don’t forget; if you don’t have time to read these books then buy the audio versions from Amazon and listen to them when you’re driving or on public transport. Again, click in the link in this paragraph.

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How to save money

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

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