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Do you feel like your paycheck is gone before you even get it? Are you always having to scrape up dollars just to pay the bills? What about this, are you going days with absolutely no money in your possession but you figure it’s okay since the bills are all paid?
You’re not alone with these feelings. There are so many people who feel the exact same way, including me.
Maybe you’re underpaid for the work that you do. Or maybe you’re bills are too much. Regardless, you need to get in the habit of saving money. As hard as it may seem, you can successfully save money for a rainy day because believe me there will be rainy days. I’m sure you know exactly what I mean since we’re all suffering from this pandemic.
In today’s post, I’ll be sharing with you a few tips for how to save money. Some of these tips will seem obvious and others may catch you by surprise. Whatever the case, I hope these tips for how to save money are just as valuable and helpful to you as they are for me.
1. Change Your Mindset
This tip on how to save money is so important. It’s the first thing you should work on. If you don’t have the right mindset, you will not be able to save money.
I like to say that mindset is everything. It can help us when we’re dealing with any kind of trial or difficulty in life. Money is no exception.
If you create a mindset that is focused on saving money and not spending when it’s not necessary then you will be able to save a lot more money. A lot of times we see something in the store, on the t.v. or during our online shopping trips and automatically assume it’s something we need, have to have, and can’t live without.
But if you just stop for a moment and rethink your decisions, you’ll be surprised at how much you really don’t need that new tube of lipstick because you have 30 other tubes that you haven’t even touched.
I say this not to say that there is anything wrong with treating yourself but do it wisely. That’s all I’m saying.
Sometimes we put unnecessary strain on ourselves and our families by overspending and overindulging in things that we don’t necessarily need or have to have.
2. Recognize the Problem
It all goes back to how you view money and your spending habits. The first step in overcoming an unhealthy spending habit is to recognize the problem. If you don’t think there’s a problem then why would you try to fix it?
Reminds me of the saying, “if it ain’t broke, don’t fix it!” I don’t know who said it first but they hit the nail on the head with that one. Sometimes we have to leave things alone and let it work itself out. This ain’t one of those times though.
You need to develop better spending habits and the only way to do so is to first recognize it as a problem that does need work.
3. Stop Competing
What I’m about to say next, I mean it in the sincerest way possible but you need to stop trying to keep up with the Jones’, the Jacksons, and anybody else who you feel you have to be like or compete with.
It’s no secret that sometimes you can unknowingly start competing with the next family. It could be the next-door neighbor or the people down the street. You have a good car that’s a few years old and you’re content with that…until Joe Jones down the street goes and purchases a 2020 Mercedes-Benz. You go get a new car the next week because you don’t want to be “outdone” by Joe and his family.
What happens? Now, you have a new car note a.k.a another bill a.k.a a new headache and you didn’t even need a new car. You let your envy of another person push you to make a silly decision and a somewhat big mistake.
At the end of the day, you’re going to have to pay that car note. Not Joe, not your mama, not your granddad…just you. So play it smart and stop competing with others and letting that be the reason you make certain moves.
You are your own person and you don’t have to compete with others to feel great about yourself. This goes back to changing your mindset. If you convince yourself that the family up the road is better than you then that’s how you’re going to feel and think. But when you tell yourself how great you really are, you will feel and think that as well. You’re great so own it!
4. Open a Savings Account
I know what you’re probably thinking, shouldn’t this have been the first tip on how to save money? Well, yes and no.
Yes, opening a savings account is important and should always be at the top of the list when you’re trying to save money.
No, because if you are looking at money and spending habits in the wrong way and making poor spending decisions, you won’t be able to save money, savings account or not.
Now that all of that is out of the way, you need to open a savings account. The savings account you choose is up to you.
When you open your new savings account, actually use it. Try to challenge yourself to save a small (or large if you just got it like that) amount of money from each paycheck and watch how quickly it all adds up.
The way you can really make it all work is to keep your hands out of it. You’re likely going to build up a nice stash of money over time if you do not touch it. So what did we just learn? Do not touch your savings…I repeat, do not touch your savings.
I can’t stress this enough. I’ve tried to save money before and it’s like I always seem to touch it. Then I think back to how much I could have all together if I had never touched it and my heart breaks slowly.
5. Use a Debit Card
Some people dislike savings accounts and would rather not use them. Well, this is not the only way you can save money.
A great way that I’ve learned to save money is by using a debit card. The card that I use is Stash Invest and it allows me to create savings goals.
Using a debit card may be better for you if you don’t really want the hassle of a savings account. I’m almost certain that a lot of people underestimate the potential of debit cards. I swear by them because they are so flexible and easy to use.
Get you a debit card and use the savings feature. I promise you will not be disappointed.
6. Make Your Savings Automatic
This one is genius, if I do say so myself. Depending on what works for you, automatic savings would be great.
There are some savings account that you can setup and have it automatically take money out and put into your savings.
A few really good options for saving automatically is digit, acorns, and of course, Stash invest. With Acorns you can invest spare change and with Stash Invest you can do something very similar as saving spare change.
7. Cut Back on Spending
So a great tip on how to save money is to cut back on spending (but you knew that!). As obvious as it may seem, you won’t believe how often this is overlooked. People say they want to save but they never change their spending habits. This is counter-productive.
No matter how much you try to save, if your spending habits are all wrong it just won’t work. Try to cut back on spending on things that can wait. Choose wisely what you will and won’t buy.
Look over your spending habits and see if there is anything that you buy frequently that can be crossed off the list. Maybe you buy a mocha from Starbucks every morning. Ask yourself how much you could save if you were to buy coffee from the grocery store instead and make it at home.
8. Get Your Priorities Straight
This one goes hand in hand with cutting back on your spending. It’s an absolute must that you get your priorities straight. There’s nothing wrong with doing nice things for yourself. Self-care is truly important. And maybe you like surprising your loved ones with gifts. Cool, nothing wrong there either.
Still you have to prioritize the things you buy. Things that are most important should be at the top of the list to buy. I do this all the time. When I’m thinking about how to spend my money I tend to want things that I don’t necessarily need or that can wait until the next pay period.
It’s all about prioritizing and being able to take a look at the big picture. Think: “If I don’t buy this right now, what will happen?” Depending on the consequences, you may be able to hold off on that particular thing and drop a few coins in your savings.
9. Invest Your Money
This is something that I have been doing a ton of research on lately. I’ll be writing about how to start investing as a beginner.
Investing your money is so important. Please understand that investing is not for everyone. I get that. I use to think that it wasn’t for me until I begin to learn the benefits of it.
I’m not going to go into details about investing here but I will say that investing your money is an amazing way to save your money. It’s a different way of saving but nothing short of amazing.
10. Be Self-Disciplined
You need self-discipline if you’re going to save at all. Again, this is something that I still struggle with big-time when it comes to saving money.
When it comes to doing school work or something like that, I have the self-discipline I need. But when I know I have money put up and something comes up, I have no problem sticking my hands in the pot. Later on I regret it.
It’s like, “Whyyy did I spend that money!” It always boils down to me not having enough will-power to resist the temptation to touch my savings. I’m still working on it, though.
Once you learn to be self-disciplined, it will be no issue for you to save money and not touch it. The more you don’t touch it, the more your savings will grow.
If you feel like you’re always spending but you want to save more follow these 10 steps and you’ll be well on your way to reaching your savings goals!
Just to recap, the ten tips on how to save money are:
- Changing your mindset to view saving money in a more positive light.
- Recognizing the problem and working to fix it.
- Stop competing with the Jone’s and focus on you.
- Opening a savings account and really use it.
- Using a debit card instead of a savings account if that’s what you prefer.
- Make your savings automatic so you don’t have to remember to save.
- Cut back on spending to save more.
- Get your priorities straight and know where you need to make changes.
- Investing your money is a smart move.
- Self-discipline is a requirement to grow your savings.
Keep working hard and don’t give up on saving!
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What were your favorite tips from this post? Let me know in the comments below!