Now that you’ve hopefully followed Money Saving Tip #1 – Know Your Finances, it’s time to move on to Tip #2. We’ve all heard the phrase “when you fail to plan you plan to fail,” and in the case of finances, the same rings as loud and as true as a church bell. In order to start saving money, you have to actually plan to save money. You must be intentional with your decision and this comes in with budgeting.
Using your Freebie Financial Sheet from Tip #1, (if you need a copy, visit Money Saving Tip 1 and get your free financial sheet) or whatever you use to know your finances, you should always account for Savings. Just like with any another bill, you should set aside some workable amount for savings, whether it be a percentage of your income or a set amount that works with your budget. If you don’t intentionally plan to save money, you will not save money.
It’s a hard thing to do sometimes, believe me I know this first hand. It may seem as though you hardly have enough to pay all your bills, much less to put in savings. But if you start looking at savings as something that has to be done rather than something that is impossible, you’ll be well on your way to becoming a money saver!
Your To Do: Break out that finances sheet, look at the money you have coming in and compare it to the amount of money you need for bills. Intentionally and realistically decide how much of your income you will commit to saving every month. Remember to think of savings just like every other bill that you must pay every month. Write that amount down and pledge to yourself that you will start to save starting this month!
After you’ve 1. taken a good look at your finances understanding exactly how much you have coming and going every month and 2. come up with a realistic amount that you plan to save every month, you’re now mentally ready to start saving.
Stay tuned for Money Saving Tip #3 where it really starts to get fun!