Savings is the foundation of wealth. There is only one golden rule if you want to become wealthy and that is to EARN MORE THAN YOU SPEND. No doubt about it.
However, with today's consumer centric society, it is really hard to save nowadays as a lot of us want to instantly gratify ourselves because we always say "I worked hard for it. Therefore, I deserve this."
What should you do then in order to fight the urgency to spend? Here are some useful tips to resist spending away your hard-earned money.
Before you spend that hard-earned money from your job, calculate first how much you make on a per hour basis. Suppose you earn $2000 a month and you work 8 hours a day, five times a week. In a week, you’re working for 40 hours and in one month, you’re working for 160 hours.
So your hourly rate from your job would be 2,000 divided by 160 leaving you $12.5 per hour.
Now before you buy stuffs, calculate first how many hours you worked for that money you’re going to spend. Are you thinking of buying a pair of shoes worth $300? With your salary of $2,000, that is equivalent to 24 hours of work.
Ask yourself first: Do you really want to work 24 hours just for that pair of shoes? Do you want to repeat the 24 hours of tiring labor, 24 hours of your boss shouting and bullying you, 24 hours of your back hurting sitting in front of that computer, and 24 hours talking to annoying colleagues for just one pair of shoes? Think about it carefully. Think twice, thrice or even four times. If your conscience tells you that you must NOT buy it, then listen to it. Chances are your conscience is correct.
True enough, it’s hard to save money especially if your will to do it is weak. Leave it to automation so you’ll be motivated to save!
Nowadays, you can now automate your savings by setting up a fixed amount to be deducted on your payroll account on a particular date every month. For a minimal amount monthly, you can automatically save and invest first before you spend your salary. Banks offer 'Regular Subscription Plan' or 'Easy Installment Plan' to boost your savings and automatically invest it in a mutual fund that will multiply your savings over time. Ask your bank branch about it and they will surely be glad to assist you.
Are you the type of person who needs exercise because you’re fat or are you worried about your health? Then try to save transportation costs by walking short distances. Instead of drinking sodas and juices in restaurants, drink water. Aside from additional sugar that will be added in to your body, you will just excrete it anyway through urine few hours after you leave the restaurant.
Don’t buy too much junk food in grocery stores. They are called such because they don’t provide much nutrients to your body. Avoid smoking, it won’t make you any good. It will just destroy your lungs and will cause you bad breath.
Instead of thinking ways to spend your money, engage yourself in physical activities such as sports or your favorite hobby such as cooking or crafting. There are many ways on how to save money by just thinking of your health. These little savings can pile up to make thousands when saved for a long time. A penny saved is always a penny earned. Truly, health is wealth.
Make a savings goal for yourself. Do you want to become a millionaire before you retire? Then list down that savings goal! Listed goals are more achievable than unlisted ones.
Make an excel sheet tracking your savings developments on a monthly basis. Update it at the end of every month. You’ll get excited as you see the amounts increase every time you save especially as you get closer and closer to your savings goal.
Once saving money has become a habit, you are surely on your way to become financially free in the future. And that will be your destiny.
As Frank Outlaw says:
“Watch your thoughts, for they become words;
watch your words, for they become actions;
watch your actions, for they become habits;
watch your habits, for they become character;
watch your character, for it becomes your destiny.”
Cheers to your financial freedom!
