Are you tired of watching your money seemingly evaporate in front of your eyes after every paycheque? Do you struggle with putting money aside each month? Check out our tips on becoming a saver rather than a spender.
Change Your Money Mindset
The key to becoming a saver and spending less money lies in changing how you perceive money (namely, appreciating how much of it you currently have versus how much you wishyou had.)
Money on its own is nothing more than colourful paper and plastic; Money is a tool, and it’s what you do with it and how you use it that matters.
The momentary thrill that comes with whipping your wallet out and making an extravagant purchase is quickly eclipsed by the realization that your bank balance has dropped accordingly.
Once you learn to value the things in your life that aren’t controlled by money, you’ll stop equating your own self-worth with how many expensive things you’re able to purchase. And don’t forget, the wealthy aren’t exempt from the need to change their money mindset; having a lot of money doesn’t automatically guarantee a happy, fulfilling life (just ask Ebenezer Scrooge.)
Get Real about your Budget & Finances
Popular culture has led us to believe that true happiness can only be attained when you have the latest and most expensive clothes, a luxury car model, and the fanciest cell phone on the market. In actuality, there are very few of us who can afford to buy those kinds of items on a regular basis without also needing to file for bankruptcy.
Make a budget for yourself and focus on what you can reasonably afford to spend each month. Figure out how much money is coming in each month, how much money has to go back out again to cover your bills and other expenses, and how much is leftover.
From what’s leftover, try to save at least half of it and consider the other half expendable income. If you’re seriously in debt or concerned about accruing future debt, then force yourself to put more aside to save and less to spend.
Create Attainable Long and Short-Term Savings Goals
One of the easiest ways to psych yourself up about saving is to give yourself both long-term and short-term savings goals. While your long-term goals (things like saving for retirement) will likely take years before you see any real payoff, short-term goals (things like saving for a vacation, a new TV, or a down payment for a car or a home) will help you learn to appreciate the benefits of saving because you’ll reap the benefits in a much shorter span of time.
Focus on the Big Picture
Ask yourself what’s going to make you happy and what will guarantee you live a fulfilling life; is frequent splurging really going to keep you at your most content? Or is knowing that you’ll have enough money set aside to ensure a comfortable and stress-free retirement really the goal you should be focused on.
Becoming a saver rather than a spender doesn’t mean giving up completely on retail therapy. The key to becoming a saver is in understanding your financial situation and goals well enough to know exactly how much you can realistically afford to spend without remorse while still putting enough money aside to ensure you’ll be well taken care of.
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