May 31 2010

Make Saving a Habit, Not an Obligation

Not all people find saving money a great experience. Many might see it as a necessity more than a practical way to live. Some may bring up the point that why save your money when you work so hard for it? Although there are many answers to the previous question, saving is something that needs more attention because it can help you spend on things that are more important in your life.

In order to develop the habit, it might help if you set priorities straight first. Mindless spending comes from no priorities. If you want to save for a part-time business venture, or a house, that would be a good start in order to develop the habit. Long-term goals tend to grow on you, as well as the habits that come along with it. It is a more effective strategy especially for people who are having a hard time.

Too much pressure on the fact to save takes a toll on some people. Paying yourself once in a while would not hurt, especially if you have your target money saved already. Go out, have a vacation sometimes, buy that nice shirt/dress, or even buy a new phone to replace a new one are just few simple rewards that can make you appreciate the money you worked hard for.

Evaluate your lifestyle. Look at your appliances and gadgets, and look on how you spend electricity and gas. Do you use sparingly or wisely? Looking on what you spend money on makes you think if such factors can be replaced or eliminated.

Look at your income sources. Do you have a part-time job or business? Do you have investments or real estate that produces monthly positive cash flow? Make savings according to the income you are receiving. Too much saving may bring you more income but may make you less happy because it makes you too uptight. The balance of spending and saving is important and will also depend on how much you make.

Savings is a practical way to keep track or prioritize your money. It also helps you avoid spending on things you might regret later. Saving is like a healthy lifestyle, you say no to some things that are “bad” for you to give way for the things you would really want in the long term.