Money Saving Ideas

It seems that far too many people spend more money than they bring in. And yet, saving money for a rainy day, for your retirement or your child’s education can be far more important than some of the things you’re currently spending money on. It can be difficult to switch from a spending to a saving mentality, but it can be done, and it can be done without depriving yourself unnecessarily.

Probably the most important thing to do when it comes to saving is to have goals. It’s hard to deny yourself now if you don’t know what you’re saving for. But once you have something concrete in mind- your dream home, a wonderful vacation, a worry-free retirement- it’s much easier to say no to things you don’t really want or need right now.

When you have a tangible goal in front of you, take a look at each individual expense to see if it’s something that is truly necessary, or if you can do away with it for the sake of reaching your goal more quickly. Quite a few people spend money on things out of habit, not necessarily because they need or even want them. By analyzing your expenses more closely, you might be able to make some cuts that won’t hurt at all.

If your employer won’t do it, then it’s easy to do yourself. Most banks let you set up an automatic transfer between one account and another. Once your money is in your account, set up a transfer to go to a savings account for the same amount on the same day of every month. If you don’t have to remember to do it, it’s more likely to get done, and again, it’s far less painful.

With online banking, it has become far too easy to disregard our bank balance and pay bills automatically or with the click of a mouse. Paying bills automatically is a great idea, but you should still keep track of your bank balance and carefully read over your bills every month so you are aware of any rate changes. If you are alert to your bank balance, it makes it easier to adjust mid-month if you see you are spending more than you normally do.

Getting into the savings mindset is probably harder than actually doing any of the above. Once you have changed your orientation to your future goals however, it will become a lot easier.