Saving money seems just a money issue, but it is not. You will not save any more money if you get a raise or promotion, when your children grow up and leave the nest or when your car is paid for.
All of us know that it is good to save, but just a few actually make savings. Why? Because they are not motivated enough to save. The desire to buy a new laptop or mobile phone is more important than the goal to save money. This is why we buy flashier cars, fancier clothes, and the latest gadgets and blow it all to buy things instead of building wealth. And when you have debt that takes a huge chunk out of your paycheck, you supply yourself with the excuse that you don’t earn enough to save money.
The truth is that we do earn enough to save but are unwilling to deny ourselves pleasures for the sake of saving. Anyone can save money – the important thing is to make it a priority. If you are ready to save, there are a few steps you can take that will help you.
Stash the Difference Away
Stash the money away every time when you save something. Say, you didn’t buy the coat or shoes that you wanted. Put the cash that you would have spent on these things aside. Have you reduced your electricity bill? Calculate how much you’ve saved and deposit money into your savings account.
Put Stop to the Waste
To put it simple – don’t purchase things you don’t need. Don’t purchase more food than you will eat to stop throwing leftovers in the trash. This goes true for water and electricity as well – turn off the water while brushing your teeth or washing your hands, repair dripping taps and turn off electrical devices when leaving the room.
You don’t miss what you can’t see. Ask your employer to deposit a part of money from your paycheck into your savings account. Next thing you know, you will have a nice sum saved with no pain and a consistent flow of cash turned into savings.
Earn Interest on Interest
The chances that you will become rich from your paycheck only are not very good. Make your money work – invest it in mutual funds or other assets and enjoy the eighth wonder of the world – earning interest on interest.
Remember – a little goes a long way. If you start saving at least $50 a month with a 5% interest, you will save $614 in one year, $3400 in five years and $76,301 in forty!