I had a conversation with somebody about their plan to save money a few days ago. Their first conversation with me had been about how to save money. We discussed many money saving options. These are actually simple the more you save, but to some people getting started, here are some tips you need to know.
1. Pay yourself first. Put your set amount of money away before spending it on something else. This means if your paycheck is $1000 each week, and you have a plan to put away $100 each paycheck, do that first. You will get used to living on $900 a week knowing your $100 is going toward something you’ve been wanting for awhile.
2. Think long- term. When thinking about money we always want it to come in faster than it is. We want our savings to double in the matter of months and our income to grow just the same. The reality is that this isn’t the case. When we think about saving money, we should have the mindset that it’s almost like we don’t have it at all anymore until we reach a certain point. This certain point could be retirement or a specific number so you can go on a trip. Saving money is a long- term process and you have to set your brain to function that way. When you start dwelling on your savings, you will start going nuts! Be patient, and understand your long- term savings will pay off.
3. Save more when possible. Using our $100 a paycheck savings, if you have the ability to put more than $100 away, do so. You might start to see you can live off $850 a week rather than $900 and the $50 extra you’re saving would become the norm. This will entail you being able to reach your savings goal sooner than you thought or being able to put away more than expected.
4. Create a physical budget plan. There are probably thousands of useful phone apps to see what your money is up to. If you’re not a tech person (like me), keep your own ledger. Write down money coming in, money going out, and what you’re spending it on. When you’re able to physically see what your money is doing, you are more likely to spend it wisely and put more toward what you actually want. Believe me, when I started to see how much money went toward eating out, I stopped and my savings skyrocketed.
5. Invest your savings. This doesn’t mean you have to sit on the computer trading stocks. No, investing can be as simple as opening up a savings account. Anything you can make interest on is a great choice. Look into what your bank offers. Sometimes there are great CD’s that can earn 3% interest. This means you put money in, and you can add 3% of your savings to your savings. $100 turns into $103. Now when we think long term, we are earning hundreds of dollars just because we’re doing a great job saving. Find an account that makes money for you while you sleep.
Stop waiting! Start by using these simple savings tips today. The sooner you save, the more you will earn long- term. If you have more savings tips, write them in so I can share them with my audience!