Is saving money one of the goals which always seems to fall to the wayside? You are not alone. Why do you think there is so much cash advance and credit card debt infiltrating households today? So often, people are defeated before they even get their first $100 saved. It is difficult to defy unexpected or emergency costs as well as the urge to splurge. It takes a first step followed by a second. Breaking down the goal into small baby steps to save may be the biggest boost you need to achieve success.
Avoid using cash advances and credit cards to save from interest costs.
Those who have been successful in their journey to save often use some or similar strategies. Its changing your way of life one step at a time. Bring a bag lunch to work each day will save on food costs and the saved money can then be used to help with debt payments or go straight into the savings account. How have people been so successful?
- Start slowly – if you just cut back on everything all at once or try to put too much of your income into savings you may go into shock or worse yet, quit soon after leaving the starting gate. Some of us may find it difficult to even save 1% of our income, especially those of us who live paycheck to paycheck. In these cases, the beginning focus will need to begin with making our lifestyle fit our income without unnecessary monthly interest payments. No matter how small, commit a certain amount each month into savings.
- Educate yourself financially – listen to or read financial and economic news. It never hurts to know more about a subject which is important to you. The more you know the better focus you will have on your own finances. You may come across tips or other advice which help steer your financial decisions along the right path.
- Use automated systems – you’ll never be able to use the excuse, “I forgot.” Did you know that you can have money scheduled to transfer into savings or retirement fund right from your paycheck so you never have the chance to miss it? It falls into the “out of sight out of mind” category. Check with the payroll or human resources department to set up automatic savings account through your employer.
- Don’t laugh, but those who save well, find pleasure in doing it – some people find this task daunting and a painstaking ordeal while others thrive on each small success. The pleasure comes from seeing financial security grow each step along the way. For those who cannot find pleasure in saving, tell yourself that behaviors can change. Every step you take towards saving money comes with a reminder of potential financial security. Eventually the security will feel good and drive the focus to save more.
- Most successful savers started learning their skills in their childhood. You can’t change your past, but you can change your now. Use this knowledge to prepare your own children to prepare them for a financially secure future.
Talk about finances with your family. Discuss prioritizing income in order to become financially secure. It isn’t about being filthy rich as it is being comfortable. Talk about how credit cards have buried households in debt and why. Discuss the other money options like cash advance, payday loans and title loans which carry the potential of hurting finances. The more that is discussed and learned at any age, the better prepared a person is to save. Saving is not a punishment, it’s a mindset. Change it!
