This is not over simplifying the best way to save money! It is essential if you are serious about being a long term money saver and being able to save money every day. Review what you spend and look at ways you can save money. Consider making telephone calls for instance only at off-peak times. Can you do without those coffees you buy at break time everyday – would a flask of coffee taken to work save you money? What about using the public lending library instead of buying books or music CDs? Once you start looking for little ways to save money and spend less you will quickly become an expert and really save money.
Here are a few tips we have complied which may help you spend less while at the same time save more.
Tip #1: Be very specific about what you want to achieve. “Saving money each month” sounds like a good step, but how much money? “Pay off credit card debt” is a great idea, but how quickly? How much will you pay, and on which cards?
When the steps in our plans are vague, like “spend less here” or “save more there,” there is way too much wiggle room. We find ourselves settling for very small changes in the right direction, when actually, people are much more motivated when working toward challenging goals. Be specific, and set the bar high
Tip #2: You need to make sure that your plan includes concrete actions you are going to take in order to reach your financial goals. Turn “spend less money eating out” into “I’ll bring lunch with me to work each day, and eat out no more than once a week.”
One of the most common reasons we fail to reach our goals and stick to our plans is that we don’t translate what we want to accomplish into real, everyday behavior. “Cut down on my clothing expenses” needs to become “spend no more than Kshs____ on clothes each month,” or you’ll never succeed in making real change.
Tips #3-5: Most of us are guilty of buying things we don’t really need. If your finances are in a sorry state, you will definitely need to get a handle on your impulse buying, and fast. Out-of-control spending is just another example of succumbing to temptation, for some of us it’s doughnuts or chocolates, for others it’s gadgets and designer shoes. Tips #3-5 are simple strategies you can use to help you resist the temptation to spend.
Tip #3: Never, ever shop as a pick-me-up. When you are tired, anxious, stressed, or depressed, your self-control will be at its weakest. This is a perfect recipe for a bad decision.
Tip #4: When you are faced with the temptation to splurge, it can help if you stop and think about someone you know who has lots of self-control – someone who is financially responsible. Self-control is actually contagious, and studies show that just thinking about someone who has it can boost your own.
Tip #5: Finally, reward yourself for good behavior. Everyone needs incentives. When you have a fiscally responsible week, or month, treat yourself to something you want that won’t totally blow your budget. For some of us, there just isn’t enough inherent satisfaction in being frugal to keep you motivated, so reward yourself with something that speaks to you.