Saving Up as a Way of Life
We are not immune to the woes of personal finances. Many of us are struggling to make ends meet, while some may have a hard time paying up loans and bills. A few of us may have a little in the piggy bank, but perhaps not enough for retirement.
No, we don’t need a lot of things. Thrift is the first rule of saving. That’s contrary to the idea of consumerism and exhaustive spending. But it’s easier said than done. How can we save some without becoming miserly?
1. Spend less time in expensive situations.
Going through product catalogs or seeing gadgets, clothes, etc inside the mall will only make us feel poor. Maybe you have some money for these, but you know that it’s not in the budget. Rather, go to the park, walk around the village, invite friends for a movie marathon at home, etc. Some things in life are for free. Meet up with old friends. You’ll be surprised how much time have gone away without spending a dime.
2. Change the image in your brain.
Delayed gratification is almost impossible if we do not see the whole picture of a more fulfilling future. When you think you’ve worked really hard to deserve a reward of some sort, think of long-term rewards such as a bigger savings-account balance or retirement fund, and the things you can do with them in the future.
3. Check your current state.
Do you have lots of clothes you don’t need? Do you have some books unread? Are there dusty things inside the closet, or below the bed that have never seen the light of day? Maybe you really don’t need all of them. Are you happy with them? Maybe you were better off with a larger savings account.
4. Cut some extravagances.
It’s a difficult thing to do. Right now, I’m cutting off my cable TV addiction. I’m getting used to free TV. Eating out in restaurants may be hard on the budget. I’m having a tough time cutting this habit, but I’m starting to eat at home before I go to work.
5. Identify your financial attitude.
Mutual fund managers often ask you this. But being prudent or risky can also apply to other aspects in life, like in saving. Are you faithful in your saving targets every month? Or did you miss your goals by a few bucks? Well, that’s okay. Or perhaps, you haven’t started at all? Find that weakness, and change it for the better.
6. Substitute costly with cheap, or free.
Look at every nook and cranny at the grocery store. Watch movies at home with friends rather than spending 10x more at the cinema. Borrow rather than buy.
7. Plan to spend, plan to save.
Some people call it a budget. Your spending plan should be realistic, though. Know how much of your earnings you can spend, and how much you can keep, without resorting to loans as much as possible.
8. Remind yourself.
Place a post-it on your refrigerator, on the PC monitor, or on your wall mirror. Seeing those rewards for your savings will make it feel like its almost there. It keeps you motivated and focused.
9. Fix your bank accounts.
You can allocate one account for your earnings, while setting-up another savings account strictly for savings. Pay up your credit card accounts soon! I’ve tucked away my own savings account so that it is now difficult (but not impossible) for me to withdraw those savings prematurely.
10. Set your personal rewards.
Here’s mine. I’d rather pay up monthly for a DSL connection than buy a PSP. Think of when and where do you feel happiest. Reward yourself with those. I’d rather visit my friends at their house than spend a lot on an extravagant vacation.
It’s good that we work hard every day, but it’s worthwhile to measure the true rewards that lie ahead.
Leave a Reply