Here are My 5 Easy how to save money tips. You may already do some or all of these things, but many of you may not be doing any of them. Actually, statistics say it is likely you’re not. So, if you are doing some of these things already then congrats, you are well on your way. If you aren’t doing any of these don’t worry. You are reading this which means you acknowledge that it is important and now you just have to take action! I want to help you build that strong financial foundation that you need. So here are 5 tips to get you started.
Tip #1 – Pay Yourself First
This was a major eye-opener for me when I learned it. I was shocked at its simplicity. Pay yourself first. Don’t pay your bills, utilities, food, taxes, insurance, car payments, etc. and not pay yourself. It’s foolish to think that you will one day have some major financial win that will replace having to do financial planning and actually take responsibility for your financial future. Saying things like “I have time to save” is being ignorant to the time you’re losing! Most American’s are not smart with their money. They don’t know how to save if it’s left up to them. That’s why almost 80% of people can’t cover a major cost in cash. They resort to credit in order to “get by” and they pay it later. This is the most important one to remember of the how to save money tips listed here. Without deciding to pay yourself, there’s no money to save!
Here’s what I want you to think about. If the government raised taxes and all of a sudden 10% of your income disappeared and you had to live on 10% less, what would you do? Would you die? Would you lose everything? Would you move to another country? No, none of these things are going to happen. What would happen is that you’d pay the extra 10% in taxes and learn to adjust to it. So, this is what you need to do for yourself. Decide right now that before you pay anyone else, you are going to pay yourself first. Almost like a tax on yourself for your healthy financial future. A tax you actually want to pay! But, you have to commit and make the decision that you’re going to do it, or it won’t happen for you. So commit, now.
Tip #2 – Decide An Amount Or % To Save
Now that you have committed to paying yourself first from now on when you get paid, let’s talk about what’s next on My 5 Easy how to save money tips list. Decide how much to save. First of all, anything is better than nothing. However, if you want to become rich, even super rich, then you need to really commit here to doing this. I would try and do as much as you possibly can, and no less than 5%. If you can do as much as 20%-30% or even 40% then do it! I know you may be thinking this isn’t possible for you right now, but I’ll remind you that you can, remember the example above about the taxes, and you’ve already committed so let’s keep going! Regardless of how much, commit to a percentage of your income, or a fixed amount you want to regularly save each week or month, and remember more is better. This will get you on your way to saving!
Tip #3 – You Must Make It Automatic
Here’s a big one, next you must make your savings automatic. You’ve decided to pay yourself. You’ve picked the percentage or amount you’ll save. Now you MUST automate it. Go to your HR Manager or set it up online yourself, but make your savings automatic and don’t leave it to yourself any longer to try and save each time you get paid. Remember, if you were good at saving money already you probably wouldn’t be reading this. Trust me, this will absolutely help you save the money you just committed to saving. It’s funny, the first month when you start doing this you will feel it a little, but it’s because you know that the money is missing. But then you realize that the money isn’t missing it’s stacking up in your savings account. You begin to adjust your living habits, you’re no longer missing the money going towards paying yourself rather you’re enjoying watching it grow. This one is a game changer on my how to save money tips list. Go automate your savings, NOW!
Tip #4 – Create New Flows Of Income
Once you have the first 3 how to save money tips mastered and have put the first steps into place, it’s time to focus on new flows of income to accelerate your savings. Start looking for ways you can create income flows. Maybe you can do that at your job by taking on extra hours or maximizing the bonus structure, or just thinking outside the box and solving a problem somewhere for someone. Maybe you make a living doing a side hustle like affiliate marketing or life coaching. Whatever it is you decide to do, find new flows of income and save those new flows of income! Use new flows of income to supplement the automatic savings from your main income source you’ve already established. This will definitely accelerate savings efforts.
Tip #5 – Use Your Surges To Build Savings
Finally, on My 5 Easy how to save money tips list. Whether you’re in commission sales selling automobiles or an hourly clerk bagging groceries, everyone has surges. Surges can come in the form of big commission checks, overtime, tax returns, gifts from family, inheritance, a sale of property or more. Use these surges as opportunities to really build your cash flow and get yourself a healthy savings account. You may need to use that big commission check for something important like a new roof or car repairs, but remember the how to save money tips from earlier. Pay yourself first, choose a % or amount that you save each time you get paid, automate it, create new flows of income, and use these surges to really build up your savings.
Wrapping it all up!
These are My 5 Easy how to save money tips, but they are by no means the only ways to save money. In fact, there are many other techniques for saving. But these 5 how to save money tips, if put into practice, are guaranteed to work especially if you are like so many others and have no plan and little savings in place now. You can do it, and you will be able to stick with it especially if you follow tip #3 and automate it. Remember, it’s your ethical duty to yourself, and your family to be financially responsible and learn to save.
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