here is a popular notion that has circulated for some time about people who save money versus people who do not. This idea is that some people are born “savers” while others are hardwired to be “spenders.” And while there may just be some scientific data out there that proves these differences are innate, it is in everyone’s best interest to learn how to become more of a “saver.” Unexpected expenses, life crises and other unforeseen events can often happen at the worst possible time. And more often than not, you’ll need money to tide you over through these times. That is one reason that it is smart to learn methods to help save more money on a monthly basis.
What Saving More Money is NOT
In our society, the concept of saving money is often tied to a sale or special promotion. The grocery store may promise to save you more money on a particular item. You may see car dealers offering incentives to save you money on the car of your dreams. While these types of sales and bargains are nice, they don’t automatically lead to a “saving” mindset or habit. If you get something on sale, you pay less for it. But if you don’t get into the habit of actually putting that extra money into some sort of savings account or even a hiding place, you haven’t really saved anything. In fact, people often use the concept of saving money when one item is on sale in order to have more money to spend on something else. You can see how that approach to saving isn’t really helping at all, right?
Make it Harder to Spend
Let’s assume that you are not a habitual saver. You would rather spend your hard earned cash than to sock it away. Or maybe you just have a hard time developing the habit of saving money. The best thing that you can do is to make it more difficult to spend money in the first place. Yes, this runs contrary to the society mindset that we live in – one where the idea on everything is to make daily tasks easier to do – but making it more difficult to spend your money can often be the all-important first step into becoming a more efficient money-saver.
The ease with which people can make purchases has led to a whole new way of shopping these days. Think about Amazon. People often make lots of purchases from this site simply because doing so is easier than getting in the car, driving to a store and walking around to find the right item. The same basic concept applies to your everyday spending. If all your money is in your primary checking account, you are more likely to blow through it, rather than putting some of it away for a rainy day.
You don’t have to swear of spending completely; just make it more difficult to have money on hand for impulse purchases. Transfer part of your paycheck to a separate account that is only for saving money. Withdraw any extra cash you have, and keep it stashed away in a jar if you have to. The idea is to find a way of making spending your “disposable” income a bit more of a challenge. And if you do trim money off of a purchase – say something is on sale and you paid $10 less for it than the regular retail price – make a note of that savings and put the money you saved into your emergency savings account. This can almost turn into a game, as you keep a running tally of purchases that cost you less than they should have, and you turn right around and actually SAVE the money, instead of simply blowing it on another purchase.
Keep these basic concepts in mind and put these tips to work. If you do so for a short amount of time, they will become habits that you can stick with to build a sizable savings account that prepares you for even the most unexpected of emergency expenses.