As everyone is muddling through our national deficit as well as our deficit globally, we must all keep in mind what our priorities should be. As well as providing for ourselves and our families, we need to be sure we can cover paying all our bills, as well as spending money on going out to do fun things, but we must all remember that it’s a huge priority to also save money.
Most people don’t even plan for saving money. If they have $300 left over from their checks at the end of the month (that hasn’t been spent on bills), they figure it’s time to shop until they drop. But, that is a horrible way to look at things.
If you’re in NEED of something (and I stress the word need, not want), put aside a little of the money you have left over for that item and don’t go over it. If you still need more money or didn’t have enough to make that purchase, keep that money put aside and wait until you receive your next check. This is an important tip to keep you focused, as well as making you have the time to think things through and not purchase on impulse.
The amount of money that you make has nothing to do with the amount of money that you save. I know of a man who works a minimum wage job, pays all his bills, eats out frequently (at reasonably priced places) and was able to save about $10,000 in a very short amount of time. He has this money put aside just incase he needs it in the future, but in the meanwhile, he is continuing to save as much as he can.
He had previously saved enough to be able to purchase a pre-owned, but still pretty new vehicle for cash. So, not only does he have a nice place to live, dresses pretty well, has a newer vehicle, is eating out at least 5 times a week, but he also has that $10,000 saved up.
Of coarse you are probably telling yourself that yah well, he’s saving that much because he doesn’t have a family to feed, or something like that. But, the fact of the matter is- no matter how many kids you have or responsibilities you have, many people do things because they want it, verses needing it.
Did you really need to purchase that vehicle that is costing you hundreds of dollars each month to pay for? Not to mention the price of gas and insurance that the vehicle demands? Did you really need to purchase a house for your family (specifically as a status symbol) or could you have rented for less? Did you really need to go on a shopping spree and spend hundreds of dollars, at a time, purchasing clothes to make yourself feel better?
All these things undoubtedly made you feel better for a short amount of time, but in the end, wouldn’t the amount of cash you spent on those items, feel better to you, if they were sitting quietly in the bank, untouched?
When I went to college, I knew a guy who was always in a rush and would drop by a famous coffee shop for their almost $5 a cup coffee, and a pumpkin scone. He’d leave after spending nearly $10 a day/5 days a week. And it quickly added up! That’s $200 a month spent, without even thinking about it! Over a year, that’s $2,400 that could have been spent much more wisely, than the things he decided to purchase… $2,400 that could have went towards his college degree, towards a new car, towards a new wardrobe, towards rent, or what have you.
I beg of you to think twice before making any big purchases, and think before spending on your little purchases (day in and day out). Because every little penny you spend, adds up.
