How to Stop Wasting Money and Build your Savings

Determining how to stop wasting money and build your savings is one thing but very often, sticking to the plan of action which you so determine can be quite another. The vast majority of people who do squander most of their income are generally aware of this fact but either do not care enough to do anything about it or are incapable of practising the mental discipline which is often likely to be required.

Irrespective of whether someone is capable of the self-discipline required or not, the first step is clearly in establishing the actual mechanics of how to stop wasting money and build your savings. The test as to whether the individual can actually stick to the plan which they develop will only come later.

Wasting money can fall in to a great many different categories but it can probably be loosely defined as purchasing goods or services which we do not really need and could very easily get by without. This can include everything from eating out or going to bars too often, buying clothes because we happen to see them on sale, or even purchasing items which are on special offer at the supermarket which we simply don’t need but the deal appears too good to miss. Identifying all of these factors in our own lives is essential if we are to learn how to stop wasting money.

It is initially time therefore for some very hard thinking and lifestyle analysis to be performed. All of the occasions such as those above should be considered, as well as how much we ten to essentially waste on them in a week or month. There is of course no need to eliminate these practises as we all of us need some flexibility in our lives but cutting back on them extensively should be the plan. A sensible course of action should therefore be determined and written down so that we will remember what we have undertaken to achieve.

The hard bit sounds simple in that it is now time to put the devised plan of action in to effect. We should consider ways of removing temptation from our path, such as stopping carrying our credit card and ATM card around with us as a matter of course and only carrying enough money as we are likely to need. This may help us in the short term until we see the benefits of the savings mounting up and are encouraged by same.

As the money starts to remain in our bank accounts rather than being wasted every month, it is important that it be transferred to an appropriate savings account. This is both to help remove the temptation to so easily withdraw it and to ensure that the interest rate paid on the sum is as beneficial as possible. Watching this balance grow, however slowly, will be very satisfying for the former serial spender.

These basic principals should help you to stop wasting money and build your savings but you should never fall in to the trap of thinking that you have abandoned your old ways and turned over a new leaf for good. It is important to stay on top of the procedures and ensure that they are maintained in the longer term.