How to save money
The first step towards good savings is to stop viewing it as a sacrifice but as a sport to be mastered. Learn to have fun at being a good saver, turn it into an interesting hobby. The habit of saving will elevate you in more than just the financial dimension. It will teach you the virtue of contentment and self discipline. In this article, I will outline simple techniques to help you transform your wallet. Here they are:
The primary method of saving money is to spend less time consuming and more time producing. Use your idle time for learning or to practice a constructive hobby. 80% of your time should be spent on income producing activities such as work, study, and nurturing social connections, and 20% of your time should be spent on economizing activities such as savings, investing, and budgeting. Using idle time fruitfully will also keep you from senseless spending that inevitably occurs when you have nothing to do. Therefore, my first rule of saving is this: When there's free time, learn or produce something.
Another hack at curbing your spending is to spend more time cleaning and organizing what you already own. Clean your home, groom your body, organize your closet, catch up on personal affairs, re-arrange your to do list, take inventory of what you own, etc. By doing such organizing and clean up task, you get the feeling of gain without spending money.
This habit will also help you make better decisions for future purchases. By taking good inventory of what you own, you will be better equipped to know what to buy in the future. That is because before expansion there must be integration. Organizing your assets help you integrate what you own into your life, giving you a strong base to build upon.
Spend time planning your future purchases. Impulse buys are enemies of your wallet. I advocate a system of great deliberation. Meditate on your future purchases and dedicate the exact amount you need for them to a savings account.
Begin implementing this practice of planning and saving to large sized purchases. As you gain more skilled in planning, you will be able to schedule and allocate amounts to even your smallest future expenditures. Almost none of your spending will be an accident. Everything will have a dedicated budget. For now however, begin by making plans for large purchases, the habit will trickle into the smaller ones over time.
Every new item you buy should replace an old one.
This habit will teach you to consume what you already own before new ones are purchased. As humans, there is a limit to the amount we can consume but our buying habits often don't reflect this reality. We usually buy things for the thrill rather than to use them. You must get into the habit of asking: How often will I use this if I buy it? This question will prevent you from cluttering your space with items that are rarely used.
Space is luxury. To prevent clutter is to increase your well being. Make sure at least one item goes out when a new one comes inside your home. This will keep you functional, efficient, and mobile.
Your health is your biggest asset. It can also become your most expensive liability when neglected. Medical expenses can decimate your wealth overnight. Therefore, take all the preventive measures to preserve your vitality.
Eat healthy, clean and ventilate your home, do some form of exercise, take care of your teeth, and don't forget to laugh, socialize, and work hard. Hard labor is a powerful form of healing. One that is immensely overlooked. You should work hard, with every fiber of your body. This will make your sleep sweet, and your mood cheerful. Practicing these habits will preserve your health. Keeping your heath will save you a fortune.
Wealth is in the mind. Your energies should not be focused on savings but on producing. Industrious habits will not only produce more income but it will increase your savings. As mentioned before, eighty percent of your time should be dedicated to income producing activities and twenty percent on saving and investment activities. The pointers mentioned in this article is that twenty percent.
In addition to the points mentioned, they are fundamentals that are too basic to dedicate an entire paragraph to but are worth a mention. Such for an example, is the practice of saving at least 20% of your income, to never finance consumption items like luxury cars, and to invest money only in what you know. An excellent and short book covering these basics is The Richest Man in Babylon. That is the only book you need regarding the subject. Adhere to the laws mentioned in the book and apply the advanced techniques from this article. May your wallet grow wonderfully.