Save Money for a Better Tomorrow

What does it take to become a master at saving money? Why is it that some people
amass fortunes while others live a paycheck to paycheck life? The truth is
that we all have the ability to save money! And I mean a huge
amount of money! The difference between a saver
and a spender is the way they think. To
master the art of saving money, work
on your style of thinking.

Why We Can’t Save Money

The world we live in today moves a whole lot faster than it did a hundred years ago.
With that, our mindsets have changed also. When we want things, we don’t
want to wait for it. We want it NOW! It’s faster to borrow money
to buy something than saving up for it. Some of us lack
the patience to save money and get deeper into
debt. Others want to save for something
but lack the self-discipline.

Most of us fail to make a savings plan for the money we receive. You’d you shocked
at how many people don’t know what their exact annual incomes are but
know what they get each paycheck. This shows that our thinking
is short term. If we can practice thinking long term and
make a plan for our money, then saving money
is much easier. We create a budget and
follow the plan. It’s simple.

How to Start Saving Money

First, we need to get a savings plan in place. I recommend using Microsoft Excel or
a similar program. You can do it on pen an paper if you prefer. List down
all the income you receive in one month. If you’re married, put
your spouse’s income too. In another column, list every
expense that you have. This includes every item
that you spend money on. Income minus
expenses equals net savings.

Now you know how much money you have left over each month. Make another list
for income and expense but this time maximize your savings. Take out
things that you don’t really need. If you’re a smoker, stop smoking.
If you eat outside, eat at home instead. Calculate how much
money you’ll save under your current plan and
your new plan over five years. Look at
my Example Savings Plan.

Beating Temptation to Spend

Now that you’ve created a plan, let’s focus on self-discipline. If the money is available
to you, there’s a greater chance of it being used. I suggest opening an online
savings account. ING offers a good free account with a high interest
rate. Set up automatic transfer to the account so you stay
on track with your plan. You can transfer money
out when you need but with an online
savings you won’t be tempted.

To build a patient mindset, keep your thoughts focused on WHY you’re saving. The
reason might be to invest, buy a home or a car, or t0 save for your children’s
college education. Whatever the reason may be, just remember to
think about it constantly! If you are thinking more about
the reasons to spend the money, then you’ll do
just that. Focus on the future and the
patience in you will develop.

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