What a question right? This isn’t a post about all the ways that you can save money, because there are just too many to mention. Each person can save money in different ways, so it would be very difficult for me to put them all here. Instead, I wanted to share with you the answer to “How Do I Save Money?“. I will then ask you for your feedback and provide a very simple yet effective tip for saving money. So, here we go.
How Do I Save Money?
Well, it was very difficult for me to save money when I was in debt. The mind is a powerful thing and it was hard for me to deviate from my debt payoff mindset. I had a goal and I wanted to slaughter my debt. There was no other option in my mind. At least, that was what I thought before I started reading personal finance blogs. This opened my eyes to a new world and view into personal finance.
Simple Tip: Save money even when paying off debt. It doesn’t matter if you save that money in an investment account or a savings account, but just save some money.
There were many blogs out there that indicated that I should be saving along side my debt payoff. Wait, what? How am I going to save money when I need to pay off my credit cards? This just didn’t make sense to me. I needed to rid myself from debt and that was what I was going to do. At least until……
What about when I am done with debt?
I was sitting there thinking about my debt payoff schedule as I did on a very regular basis. My mind was wondering with ideas on how to speed up my payoff. Then it hit me, right upside my head. What was I doing? I was so enamored with paying off my debt that I wasn’t saving anything. I wasn’t saving for retirement, I wasn’t pushing up a little emergency fund, I just wasn’t saving. Stupid, stupid, stupid.
This is when my mindset changed. I needed to save alongside my debt repayment. I needed to sock away a little money each month in order to start building wealth. Yes, some of you might talk about the interest rates on a credit card, but that doesn’t matter. You need to give yourself something to work with once you are done paying down your debt. If you pay off everything, but never saved anything, then you will be starting at zero.
So, how do I save money?
Ok, I have rambled long enough. Now, I am going to let you in on my little secret. In order to save money, I treat my savings accounts like a monthly bill. Yep, that is right. It is not about the automation (which is also great), but is more about the mentality. When you pay bills, you hate to do it, but you still do it. Paying your bills is a priority. Saving money is not. If you flip your mentality and start saving money like it is a bill, then you will be more likely to do it.
I started out small with just $5 here and then moved up to bigger amounts. If you don’t think you can save any money, then try at least $5. It is small, yes, but it can add up over time. You will be amazed on how it makes you feel to be saving. It is that simple. Start small, but just start.
My Simple Savings Tip
I have a very simple tip for you about saving. Just do it (thanks Nike)! You can’t save money if you don’t try to save money. It doesn’t matter if you invest it or put it in a high-interest savings account. Now matter what you do, you just have to start saving. It doesn’t have to be much, but when you start and stick with it, your mentality will change. Hopefully you will be bitten by the savings bug.
Alright readers, I want to know, How do you save money?
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Do You Know Your Credit Score?
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