Saving Money

Saving money is one of those things in life that isn't particularly hard to do, but it's often left neglected with the scapegoat that we "need money right now." We have a tendency to focus on the now. The reality is we spend enough energy focusing on the now. What most of us need to do is prioritize more in the future. We can, and many of us do, get by in life without planning our future, but that's not a justifiable reason to put our future in the back burner. I wanted to make that clear so no one will use that to escape responsibility.

Make arrangements to have your paycheck directly deposited to your savings account, instead of your checking account. That way you can't access your money unless you withdrawal it at the ATM or transfer it into your checking account. ATMs weren't always the big thing. People used to carry around cash. Budget a certain amount of money for food, entertainment, and going out. As your bills come in, only withdrawal the amount of money you need if your time and location permits it. This encourages me to walk to my local ATM so that I won't get charged for making transfers. I get to exercise and save money. If you find that you can't pay your bills on time through this method, you can try estimating how much your bills are going to cost and transfer that amount. This is a fairly easy and highly recommended adjustment.

If you refuse to keep money out of your checking account, at the very least, make arrangements to have only part of your money transferred into your savings account. Experts recommend saving 15-20% of your income. If your rent is one-third of your income, you have more than enough money to sustain your living comfortably, in which case you can live without 20% of your paycheck. You simply have to learn to live within your means. If you get paid every two weeks, make arrangements with your bank to deposit 10% of your paycheck into your savings and the rest into your checking account. Some banks also waive the monthly fee if you agree to a once a month transfer into your savings account, which is a good way to build the habit of saving money. If you don't see the money, you won't feel denied . . . after you get used to the change, which I assure you, you will. This method is a lot more foolproof than testing your willpower.