So, do you save? I hope you put some money aside. You don’t? Don’t worry, reading this post and applying the tips would go a long way in changing your perception towards saving money. I’ll first tell you of how you can’t save: Not by using discipline or willpower. Trust me, I have tried that and failed miserably. Discipline and willpower only work in the short-term.

What really works in the long-term is understanding you spending habits. That is what we touched on yesterday on Why is it so Hard to Save Money, please read if you haven’t. Once you understand your spending habits, you can change by building new habits. That’s how you become a money saver.

Let’s get down to business – ten ways to build positive money saving attitude

1. Set a Goal

What do you want?

• Do you want a T.V?
• Do you want to have your own place?
• Do you want to be financially independent?
• Do you want to get out of debt?

A goal will not only give a reason to save but also motivate you to stick to saving. If you have multiple desires, start with one goal, once its achieved set a second one.

2. Set a Deadline

Set a date by which you want your goal achieved. Write both on a piece of paper. Stick it somewhere you can look at in multiple times a day – a computer sticky pad, for example. Look at your goal and deadline on waking and before sleeping. It will remind you of why you’re saving money.

3. Track Expenses

I bet you probably have a rough idea of how much you spend, but unless you keep track of every cent, that idea would remain to be inaccurate at best. Here’s a simple way to do it, you definitely carry a cell-phone wherever you go. Note everything you spend in your phone’s calendar and when you get home copy everything to your personal financial tool. At the end of the month you’ll know exactly how much money you’ve spent and on what.

4. Analyze Costs
Check where your money goes. Reduce and remove costs. The first time you analyze your expenses can be shocking. The more, the better. This is your first wake up call.

5. Make a Budget
Calculate how much you need for:

• Food
• Rent
• Bills
• Clothes
• Leisure
• Etc

Deduct cost from income. Now you know how much you can save each month. Even if it’s not much, it’s better than nothing.

6. Pay yourself First

Make the first bill you pay every month the one you pay to your savings account. Just like all your other bills, there’s no way around it, you must pay month after month, unless you’re in debt. Then the rull becomes: “Pay your debt first”

7. Earn More Save More

Save a fixed percentage of your income. This way, as your income goes up, so will your savings. 20% is a good start. You can’t? then you are living beyond your means. Time to wake up and cut down.

8. Think Saving

If you have money left at the end of the month: save it. You don’t have to spend it all. Its okey to buy once in a while, but make sure you really need them, don’t just spend for the sake of spending.

9. Wake Up

In the introduction I stated that you need to understand your spending habits. You need to understand why you buy things. Do you buy things:

• To impress people?
• To be part of the group?
• To fill other’s expectation?

Next time you buy something, ask yourself: Why am I buying this? Or Why am I eating here, I could as well eat at home. Don’t judge, just notice.

It takes time but once you get it, it’s eye-opening. Your life will be simpler and you’ll avoid many financial headaches.

10. Keep to the Right Company

Your environment influences your personality, and thus your habits. If you want to build the habit of saving money, surround yourself with people who save money. If you spend too much time with people who spend a lot, you’ll also find yourself overspending.

Let’s get down to some money saving business. Here’s a bonus tip: write this next to your goal and deadline: If I don’t save now, I’ll never have money. No matter how much I earn.