The true secret behind moneysaving as an everyday habit is to give priority to you. This does not mean you ought to buy everything that catches your eye, but you pay yourself each month as you pay all your usual creditors. Ask yourself a realistic long-term goal and then "pay yourself" keeping a fixed amount of money in a savings account or investment. Be sure to do the same day each month (for example, every 10th of the month). If you wait up for a month to see what you have left, you probably will find that you have no big deal. The easiest way to do this is to schedule an automatic transfer of a part of your salary, doesn't really matter how small is the amount, from your checking account to a savings account, a pension fund or a savings account for college for your kids . Your goal is to make such an ingrained moneysaving habit that you can no longer imagine life without it. At the end of each month you will have the satisfaction of knowing you've done enough to protect your future and your family a little more than before.
Paying yourself first is the first step in building a security future for yourself, setting money aside to handle the things that will happen that are not in the budget can keep a person from hitting the bottom real fast. A backup plan is always necessary in case of sickness in the family not just yourself, a broken appliance, or even the lose of a job.
Automating saving makes it a lot easier to save money. Each time you are paid, after your savings are transferred you'll be compelled to use only the money left in your account for everything else and try to save a bit of it too if you can. Or even better instead of having the money lying in your account, invest it. The money you invest will keep earning you more money indefinitely.
That's exactly what we do, because I feel it's especially important when you're self-employed. My husband is the driving force behind our business and each month we ensure he gets paid a small amount and put the rest in the business account. The same goes for my wages; each time I get paid we divide up all the funds and transfer money to our savings account. We have also set up direct debits to go out on the 5th every month so we don't have to keep remembering. It's a lot easier this way.
Yes, savings through salary deduction is one of the surest ways to maintain a saving regime. Most persons are not disciplined enough to religiously take the money to the savings institution when they get the cash in their hands. The temptation to spend the money on things they may believe is urgent which could probably have stayed for another time will probably divert many persons from their goals in many instances.
I agree. Love yourself first. Put aside some savings intended for yourself alone, sort of like emergency savings, if you ever found yourself in desperate need of cash or you want to indulge yourself with some pricey item that you love, at least you have something to fall back on.
What a wonderful thread! This is exactly what we need in this trying times when money and saving are two of the hardest things to find and do. I myself am amenable to having a very minimal income as a stay-at-home mom but saving is still one of my major priorities. I do believe that it's important to pay yourself first and put a certain amount of your income every month to your savings or investment account before you think about the spending part. That way, you're assured that you have saved up something from your monthly income before they're all used up.
The "pay yourself first" concept is one that has been so hard for me. I don't make a lot of money nor do I spend a lot of money. However, since my budget is so tight, there's generally very little left over to begin with. I started having just a mere ten dollars taken out of every check I get (I get paid weekly) and it has added up quite nicely. Naturally, since it is only ten dollars, I don't really miss it. It has been the only way I have been able to save and it has worked so well I hope to increase the amount taken out each check soon. I have been very pleased with the results.
