Saving money for retirement or anything you may want is going to require discipline. In reality it doesn’t make that much difference how much money you make because studies have shown that those in the lowest income brackets are able to save more. If you are wondering how on earth they can do it and you can’t, read on. While there are a few tips that we can impart to get you started it will be up to you to get the determination needed to actually save.
You can use a technique for saving money that has been used to help people lose weight. It is called behavioral modification and you can use the same theory to train your brain to save. The process begins when you decide that you don’t need to spend your money on things. If you think you have to buy that cup of coffee or new suit, don’t. Take the money you were going to spend on the item and put it away or in a savings account. You may feel cheated or deprived at first. When this feeling hits, look at your bank account. It will be instantly uplifting.
Instead of buying something new that can be repaired with a little elbow grease or a needle and thread, do it. You will be amazed at how much you can squirrel away when you make repairs, not more bills. If you can’t bring yourself to cut up your credit cards at least put them in an inconvenient place so that you have to work to spend money.
There are books on the subject of living with less or you can find several hundred web sites devoted to this very subject. You may even find that after a few months of less expensive living techniques that you can add some of your own ideas to the list.
If the need to spend money is almost overwhelming use another weight loss technique: exercise. Take a walk or ride a bike. You will find that you feel so good you won’t need to go spend money. If you are lucky enough to have a job with a 401K plan you should sign up to have money automatically withdrawn. This is the easiest way to save and you won’t even miss the money. If your company doesn’t offer this then have money moved to a savings account by direct deposit. A specified amount can be withdrawn every month on the date of your choice. Not as many people carry cash as they used to, but if you normally do then you can deposit your spare change in a jar or other container every day. Once you have it filled take it to your bank and deposit it into your account. You will be amazed how fast you can accrue money in your savings this way.
Groceries can use a large sum of money so study your weekly supermarket ads and plan your meals around the specials. This can be a great cost cutting measure that can be added to your savings account nest egg. If you can go without meat for a couple of meals you can save even more at the register. Unexpected money doesn’t come along too often but when it does send it directly to your savings. This money could be from your income tax refund, an inheritance or a purchase refund. Take any extra money windfall and put it away.
Temptation comes in many forms, but none are as well received as a catalog. Who can resist the bargains that come in the mail? You can! Don’t even tempt yourself. Just toss them. It is just too easy to spend money, and who needs to take out cash advances to pay for unnecessary catalog items?
Now that we have given all of these ways not to spend your money and save it, there will come a time when you have to replace something. You should be smart when this happens. If you want to save money, do some research before making any purchase. That way you may be able to find a bargain price. Don’t forget about eBay and other discount web sites as they can be a great source for savings. Once you have the proper mindset you can save like a pro.