If only saving money was as easy as spending money. If that were the case, we would all have healthy savings and would not need help saving. Becoming a better saving is not hard, but takes discipline and small smart choices everyday. Let’s explore some ways to help you become a better saver.
What are reasons to save money?
The first step in understanding why to save money is knowing the reasons why. You can do many searches for reasons to save money and hundreds of articles will appear. Everything from saving for vacations to buying a house will come up. No doubt, it can be overwhelming and discouraging.
If you are trying to save for retirement, a house, a car, vacation, and your family, you may feel like you will never reach your goal and fail before you even start. That is why it is most important to think simple.
Simple reason to save: Saving helps me achieve security for the future.
Don’t worry about how much to save, for what, and when. Those answers will come in time. The most important thing to remember is that savings, any amount, opens doors and opportunity. The more you save, the more opportunities you give yourself in the future.
Why to save money for the future?
So, now that you know the most important reason to save money, the next question naturally is why save money for the future?
Again, it comes back to opportunities. Savings helps you build sums of money that can grow in purchasing power over time and be used to help you secure your future.
For example, saving a small percentage of your income every paycheck now helps you retire with money in the future. This is the most basic reason many people contribute to a retirement plan.
What they don’t tell you, is savings can be much more powerful than just a retirement vehicle. If you can save enough and control spending, put the money to work, and stay disciplined, you can retire early, travel more, and live debt-free. It all comes down to the choices you make every day.
How can I save money every day?
Saving can be broken down to one basic element. What is good enough.
Here at ThrifyRich, we want our readers to enjoy life, but not to spend on unnecessary items. We are told that we need the newest fashions, fancy coffee, premium water, and nice lunches. But do we???
Many people who don’t have savings also enjoy a premium cup of coffee each day. That cup of coffee over 30 years is more than $90K. Think about that, one simple choice in the morning can have a $90K impact over 30 years.
What about the food we make and the leftovers we don’t eat? What about the $12 lunches, what about the $2 sodas, or how about $70 family dinners?
Saving more every day comes to two simple action items:
- Ask yourself on every purchase: Do I really need this? If yes, is there a cheaper way?
- Pay yourself every time you make a good choice. For example, you were going to buy a soda but said no, track the money saved and move that money to your savings.
If you can do just those two things daily, you will see your savings grow and you will start to become ThriftyRich.
How to save money consistently
Now that you know how to make smart daily choices to save money every day, the next step is to add consistency.
Saving money consistently requires accountability. Every smart choice you make should increase your savings and give you more opportunities. It is important to know, however, that those opportunities require daily feeding to materialize in the future.
It will take time, but at some point, you will reach a milestone that you thought was never possible. Imagine if you had just saved $5 a week 5 years ago you would have over $1,300 saved before any compounding interest effects.
How can I learn to save money?
Learning to save money takes all the principles above. It is knowing why you want to save, knowing the difference between necessities and non-necessities, rewarding yourself, and consistency.
It is not hard to know how to save money, there are many saving techniques, coupons, and other resources to help you save. The hard part is the discipline to know that you saved and to move that money into savings.
You can be the best at savings, but still, have no savings!
To build savings, you have to recognize when you saved, make a conscious effort to move that savings to a savings account, and repeat.
It is not enough to just save, while good, it does not build your savings account.
Building savings is a daily activity that you can win if you know why you are saving, the impact it has over time, and the discipline to account for the things you save on.
Always remember to keep things simple, know the opportunities that savings open for you, and that small choices today can lead to big impacts tomorrow.
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