“A simple fact that is hard to learn is that the time to save money is when you have some.” --Joe Moore
Being frugal is one of the best lifestyle choices anyone can make, even for the wealthiest of people. Overspending, even when you have a greater deal of money, is still overspending. Setting aside extra cash is an imperative but challenging task for many. It comes with three implications. Firstly, to spend less, reduce consumption, give up some of your favourite weekly thrills and foods. Secondly, to make sure cash set aside stays set aside, so that all those wonderful sacrificial moments of saving don’t go up in flames in one quick but costly lapse of judgment. Thirdly, to make sure your money isn’t just sitting there, but put to good use that doesn’t involve spending on your favourite guilty pleasure. All of these obstacles can be tackled, however. In any case, it's anything but easy to commit yourself to all three. For some, one may be easier than the other. Let’s look at some methods to help you ensure you can put cash away AND keep yourself from dipping your hand in the cookie jar. Check yourself: Be honest with yourself about your spending habits. Yes, you have a problem. The first step is acceptance. Download a budgeting app: So many are available on these app stores to choose from. My favourite is Money Manager. Keep track of where your funds are going and coming from. Keep track of what you’re spending on and how much. Set limits. Charge yourself: Pay yourself 5% of every purchase you make. If you buy something for $100, consider it $105 and put that $5 away. This not only helps you put cash away, it makes purchases appear to be more expensive than they are. Spare change: Put away coins. A lot of people don’t even notice their spare change as a part of their disposable income to begin with. When these stack up, you’ll be surprised how much money you actually have. Bargain: Not everyone loves a good negotiator, but it goes a long way in saving money. If you see an opportunity to get a fairer price, go for it. Reward yourself: Associate saving with a reward. Every time you reach a particular saving goal, allow yourself the freedom to enjoy one of the things you may have given up. Don’t go overboard though. Switch it up: Condition yourself to thinking you already have less than you do. Sometimes mind games are good. When you withdraw any amount of cash, keep two thirds of it and hide the rest from yourself. Forget about it for now. Spend like that’s all you have. Start investing: I suppose this goes without saying. I’m no investment expert, but it sure helps to open an investment account and put away some of those savings, so they can grow, grow, and grow. Make sure to keep some of the savings for an emergency fund though — don’t put all your eggs in one basket.
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AuthorHey there, I’m Racquille. I’m a B2B freelance consultant for research, content development, and design. Your above & beyond personal brain-picker. Currently building 2 start-ups; fingers crossed. Archives
June 2019
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