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How to Save Money when You Have a Spending Habit

How to Save Money when You Have a Spending Habit

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Everybody loves money especially spending money. A lot of the things people buy are not needed: new clothes, gadgets and night life are not always necessary. The economy is rough, getting jobs is tough, so you need to value your money. Sadly, many people don’t have a high a financial IQ. They know how to make money, but not sure how to save and spend it. If your able to manage your money right–you will be able to treat yourself more comfortable and more often in the long run.

Here are some of the steps with which you can save money even while spending enough:

1.Realize that you have a problem. The first step to solve any issue is to be self aware. It’s easy to be in denial, so if you’re conscious of your habits then you already won half of the battle. When you’re aware of the negative spending habits, you start second guessing every cash exchange, swipe and proceed to checkout click. Even if you continue to spend carelessly, the “should I do this” thought will linger in the back of your mind.
2.Open up a savings account. When preserving money, you need a savings account. It’s safer than holding cash in your house and it’s easier to manage. Pick a bank of your choice and physically go to that bank and sit down with a bank representative. They will thoroughly discuss everything you need to know about your new account; it’s easier to understand when speaking face to face. Have them walk through with you and set up an online banking account to help manage your money with that bank.
3.Separate your wants from your needs. It’s obvious that you can’t avoid spending money on certain things: bills, children and food is a must. Other things you can live without. You don’t need to upgrade your phone when it is due—you want to upgrade it. You don’t need to buy that extra Big Mac—you want the extra food. You don’t need the premium cable package when you’re barely home to watch TV in the first place—you want the premium cable package.
4.Create a new zero. After you budget your monthly expenses and cut back from all the things you don’t need, set a new benchmark in your savings that you cannot go below. For example: if after all your expenses each month you usually end up with $500 in your account—act like that’s zero. Do everything in your power not to have your account fall below $500. Now lets say time passes and you save a little more money, make $550 your new zero and keep doing this system forever.
5.Pay yourself before you pay Uncle Sam. When people first get their paychecks or if it’s the time of the month that their bills are do, they are quick to throw all their money at those companies they owe. Hold on for a second—take a step back and relax, ease off the pressure. The first thing you do when you get your money is put a certain amount that you’re comfortable with into your savings. Before any bills are paid, before any money is spent, give yourself the money you worked hard for before giving it to the government. Realistically, what’s the worst that happen if you’re a few days late when your bills are due? Credit yourself first.
6.Develop Will-power. You will see commercials, you will see other people with nice things, and friends will tempt you to take a night out of town. There is much power in saying the word no. Stay strong and keep reminding yourself that you’re trying to value your money and not let it go to waste.
7.Set goals. Much like step five, have a benchmark. This is important: it gives you a standard. Take out a pen and paper and write them down. You will only go out to eat once a month—goal. You will make sure to cut off the lights every night to save electricity–goal. You will walk to certain places to instead of driving to save gas—goal.
8.Don’t be afraid of coupons. When shopping, plan before you buy. Grocery shopping, book shopping etc. When you’re in need of an item, take your time before purchasing. Go to the best place so you can get the best deal. Don’t be afraid to be called cheap, your saving money. Groupon is an excellent place to look for coupons and if you are online shopping, go on retailmenot.com. Saving a couple bucks with each coupon will add up more than you think in the long run.
10.Treat yourself. After you trained yourself in this new found saving habit, there is nothing wrong with spending a little bit of money on yourself. You worked hard for this paycheck; you deserve it. Remember, be responsible and don’t forget your priorities. Do not spend more than you make—this is an ultimate no. Stay within your budget, stay within your living means, and enjoy the things that you buy yourself.
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How to Develop and Improve Your Money Saving Habits

How to Develop and Improve Your Money Saving Habits

Saving money is one of those habits that we know is good for us, but might not have developed particularly well. For an individual who doesn’t currently save, perhaps it’s because they’ve faced some financial hardships in the past, that they’re too busy “enjoying life” or that they simply never saw the value of devoting any of their energy to saving.

But at the end of the day, none of those reasons is particularly important. Rather than spend time figuring out why we don’t yet have that good habit in place, it’s better to simply start building one.

Here is some banking advice and pointers for developing and improving your own money-saving habits:

  • Take a Financial Inventory. Sometimes the biggest incentive to getting into a money-saving habit is merely understanding that your current financial situation might not be as strong as you thought. By taking a financial inventory you’ll be able to quantify exactly how much you currently have saved, as well as your current assets and liabilities. This is usually known as calculating your Net Worth. Understanding clearly that you might not have as much saved as you thought can give you a strong push to start doing so.
  • Make a Budget. Even though you know you should be saving, you might not have a good idea of what is a reasonable savings amount to target each month. Having a personal budget that clearly identifies your income and all of your expenses can help make this happen. There are manybudgeting tools that you can use. When you have a detailed budget you can identify potential areas to cut back on in order to boost your savings rate.
  • Be Creative. In order to maximize your potential savings, don’t assume that any category of your expenses is fixed. Nearly all things can be changed and scaled back on, provided that you have enough will to do so.
  • Involve Your Family and Friends. Even though we’re talking about your personal finances, your daily life probably involves many other people. It can be difficult to save as much as you’d like if you have friends and family members who may be competing for your financial resources. For example, your budget may demonstrate that you spend a bit too much going out for with your friends, so consider proposing less costly alternatives sometimes. Similarly, if your family spends too much money going out to eat, come up with a less costly way to still get the quality time together. By involving those in your life who are closest to you the savings process becomes easier.
  • Prepare Yourself for a Change. Even once you’ve identified the areas that you want to cut back on in order to boost your savings rate, it’s quite another thing to actually go ahead and change your behaviors. If you assume that changing your other habits will be easy, you may be frustrated to find that it requires a little more work, and frustration can lead to failure. If you are targeting multiple areas, change one at a time and to give each change some time to become a new habit before trying to change the next one.

The best way to improve your savings rate over time is to do so in a deliberate and sustainable manner.