One common saying is to have “money burning a hole in my pocket”. For many people this is the case, any extra money they have, they find something they think they need to purchase. Even though you may think you need to spend any money you receive there are some steps to start saving some money.
Have a goal
Is there a large purchase you want to make? By cutting out smaller expenses on items you may not necessarily need, it will make it easier to make a larger purchase of something you really want or need. It may seem impossible to save a large amount of money, but small savings over time can add up quickly. By saving the money instead of going into debt for it will save more money in the long run. If you can pay for the item outright you will save on interest charges which will save you money for other goals.
For many people, owning a home is one of their goals. Along with not being able to save money, their shopping activity may also hinder their chances of getting a mortgage if it causes difficulties with their credit report.
It is almost impossible to avoid merchants enticing you to purchase their items. If you find yourself having difficulties saving money, distance yourself from as many of these advertisements as you can. For example, go for a walk outside or other activities instead of window shopping or walking around the shopping malls. You may tell yourself you are just going to look, but you may find something you think you can’t live without.
Unsubscribe from some of the catalogues or shopping websites you currently subscribe to. Don’t look at the sale flyers that come in the newspaper or mail unless you are looking for something in particular that you actually do need.
Set a budget
When you consider how much money you will have coming in each month, first subtract from it any expenses that you need to pay each month; such expenses include mortgage payment, rent, food and utilities. After these are subtracted, then you can see how much is left for other expenses. Allocate a certain amount for items such as dining out, clothing and entertainment. When you get paid, then get cash for each of these areas and put that amount in an envelope labeled for the correct category. Once the envelope is empty, then you are done spending in that category until the next payday. This is one way to keep track of how much you are spending in certain categories and limit your overspending.
It may seem like you cannot not stop spending money and start saving it, but there are ways to make it possible.