Surefire tips to turn you from a Money Waster into a Money Saver
Are you still saving money in the old piggy bank, or counting the spare change in your car’s ashtray as your savings account. If so, you may also be wondering just how successful money savers are able to do it. How do they manage to make putting money away in savings a priority and a habit? Sure, some people who manage to save money regularly are wealthy, but there are plenty of folks out there in all the major income brackets who somehow manage to save money on a regular basis.
How do they do it? Glad you asked! Keep reading to discover some surefire, proven-effective (i.e. these are the things people actually do to save money successfully) tips that will help you to get moving down a more financially secure and successful path in the future.
Successful Savers Start Saving Money Early
The early bird gets the worm isn’t just a saying that applies to waking up early in the morning. Those folks who begin saving money earlier in life tend to be more successful over the long haul. This makes sense, as the habits we form when we are younger are more likely to become established over a lifetime, and saving money early gives it a chance to grow via earned interest too.
What if you are closer to retirement than just getting started in life? Well, another old saying applies here: “It’s never too late to get started!” You cannot go back in time, but you can make it a point to start saving money now to prepare for the years to come.
Automate Saving Money
Don’t rely on your memory or manual efforts to save money; make the process as automated as possible. The less you think about putting money away, the less likely you will be to spend it instead. And having money automatically deposited to retirement accounts or investment accounts is the ultimate way to keep that money out of sight and out of mind. Go over your budget and see how much you can reasonably save each month – even if it is just a small amount for now – and set up your payroll to automatically send that money to your account every payday.
Don’t Reduce Your Budget When Debts are Paid Off
You are probably working hard to pay off some kind of consumer or educational debt right now. That’s good, but don’t reduce your budget once those debts are gone. In other words, if you pay $100 a month on a credit card debt, and pay it off soon, don’t treat that $100 as “extra money” for spending. Use that money to tack onto another debt payment. If you don’t have any other debts to pay off, add that money to the total that gets automatically (remember the last tip?) deposited into your savings account.
In a similar manner, if you get a raise at work, don’t immediately start living differently. Avoid taking on additional debt just because you have more money coming in each pay period. You already know that you can get by on what you are making now, so continue doing that. As for the extra money – you guessed it – have it automatically deposited into one of your savings accounts.
These are simple, commonsense tips that will help you to stop wasting money and to start saving it at a faster rate than you may have ever thought was possible. These are some of the same techniques that lifelong, successful money savers have used for years. These tips work for those folks and they will work for you too!