Do you believe that saving and budgeting are not in your genes? Well, I have some good news for you. Both budgeting and saving are skills that can be taught and learned. And since now you know that…stop blaming your parents for your financial misfortune.
What is more important than how much you make? Well, it is how much you keep’. If you look around, you will see many people who don’t earn much but have good savings, whereas others might be making 2 or even 3 times more than them and struggling with money.
The secret is not to live cheaply and save as much as possible but to identify the best ways to save for the future ‘without compromising your lifestyle in the present.’
1. Make it automatic
Create a separate savings/investing account and move 5% or 10% of your money as soon as you get your paycheck. Now since you don’t see that money in your regular account anymore, you are not tempted to spend it. Don’t struggle with your willpower when you can use the simple principle of ‘Out of sight, out of mind.’
Believe me, when you don’t see that money, you will not miss it anymore. It’s time to get excited about how your future will look if you continue this practice for life. Never touch this money for your personal use…it is there for investment and to build your future.
>> 12 Keys to the successful family budget
2. Make a list
Whether grocery shopping or online shopping, always buy from your list. This will save you money by keeping you away from ‘Shiny object syndrome’ and time because you are not cluttering the house with unwanted things.
3. Go Branded… but on Sale
If you like to buy and use branded things, don’t let me or anyone else tell you that you need to compromise your lifestyle and go cheap. Carefully look at your house and wardrobe and observe how many things are already there, waiting to be used. Refer the tip no. 2. Make a list of things you need and shop for them during the sale.
Due to global culture nowadays, there are sales almost every month or 2, so be assured that you are getting your hands on your favorite thing pretty soon than you can think.
4. Treat yourself for less
How do you like to treat yourself? Want to have a nice haircut, massage, or travel to an exotic location? Go online and search. There is always some business promoting their service to get known or establish themselves in an unknown community. They usually offer great products and services in exchange for your feedback and for spreading the word. So please make use of it.
>> 7 Reasons why you should budget your money effectively
5. Don’t feel pressured to spend
Every day you have many invitations starting from Birthdays, brunches, lunches, dinners, shopping trips, and various meets. All these cost you not only money but also time. And if you are not protective about your time and money ..no one else will! It’s essential to socialize, but not to the extent that you start feeling anxious and tiresome about it. Choose wisely! Stop and think, who and what is important to you? Don’t just be out and socializing for the sake of doing it or being part of the herd. Live life your way!
>> How to Know if you desperately need a family budget
6. Don’t hide anything …from yourself
I am not trying to be funny here. But how many times have you been telling yourself that this is just one of the purchases? It won’t affect my budget, and I won’t do this again. Are you unwilling to track that as emotional spending in your budget?
Please keep track of all you’re spending in cash or on a credit card. Spending is spending. Keeping track helps you see where exactly your money is going and where is the leak? If you have a severe problem with emotional spending, get professional help now and thank me later!
If you have to take advice on money, who is a better person than Warren buffet? Mark his words when he says
‘Do not save what is left after SPENDING but spend what is left after SAVING’!!!
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