While you may not have gotten a raise, you can still save more money if you introduce smart saving habits into your daily lifestyle. Being able to save really just means you take a closer look at the ways you manage and spend your money, then find avenues for putting cash away. Creating rules to follow and developing smart habits will change the way you think about your cash flow, and can be a great way to trick yourself into saving more money.
Striving to use only cash will cause you to force yourself to pay closer attention to how much money you really spend every time you go out, to the grocery store or clothes shopping. The trick is to put your plastic away so you feel like you don’t even have it to use. You may also want to consider removing your credit cards from easy pay and 1-Click settings from your online accounts to make it harder to make purchases. You might be surprised at how much less you want an item you see online when the added difficulty of typing in your 16-digit credit card number is in your way.
Check Your Credit Card Statement Every Month
Your credit usage may have run away from you because you are like the thousands of other people who do not check their credit card statement every month. Looking at how much money you spend and the places you spend it is a good way to make yourself think about your choices in a more deliberate manner. Seeing that you spent $80 at the bar instead of the $40 you planned may shock you into being a little more careful next weekend, or realizing you spend half of your paycheck on new threads may encourage you to create a budget for your wardrobe.
Good Things Come to Those Who Wait
Attorney Leslie Tayne who writes for Fox Businesses advises you wait five days before making a big purchase. While that hot tub sale is enticing, give yourself five days to ponder whether a hot tub purchase is really in line with saving for your kids’ college tuition. Thinking about what you want to buy is a great way to prevent yourself from spending too lavishly on items you don’t need. A bonus benefit of waiting to buy something is that it gives you a chance to find a better deal, whether you look online or in competitors’ stores.
Ignore Extra Income
Even though your surprise income may look like it has “jet-ski” written all over it, try instead to imagine it saying “Save me!” and put it away into an account you don’t use immediately. Tayne advises that you only rely on the money you make regularly to make big purchases. That means you should take that big fat tax refund or even the $10 you found in the parking lot and put it toward debt or into a savings account. Extra income is anything outside of the realm of your weekly or monthly income, including cash you make from selling your unneeded wares, (like diamonds that you sell with us!) By putting that extra cash away, you’ll never be tempted to dump it down the drain on something you don’t need. The unexpected kind of money is best spent by not spending it at all.
Investopedia advises against taking care of your financial business on a day-by-day basis. Instead, get your employer to deposit portions of your paycheck not only into your checking account, but into your savings account and IRA as well. In addition, set up your credit cards to pay off the balance each month, not just the minimum. A penny paid off is a penny and a half earned in the credit world, because each time your balance equals zero, that means you don’t have to pay annoying off bank fees later in life.
Saving money is really just about changing the way you look at money. If you don’t let it burn a hole in your pocket and instead let it burn a hole in your debt or build your savings, you’ll be on your way to securing a bright financial future in no time.