One of the oldest adages in the financial planning industry is “pay yourself first” by depositing a percentage of your income in a savings account. However, many of us are already so “maxed out” that we don’t have any money to put aside. The mere thought “I should save money” is more an affirmation of one’s inability to do so.
However, there are plenty of ways we can save money if we really motivate ourselves. The way to do this is to take small steps with great discipline and clarity of purpose. Too often, people trying to save money deposit large amounts into savings accounts, leaving them so strapped that they eventually withdraw it again.
Here is how to save money: take a small amount every week off of the top of your pay. This can be difficult at first and there are always temptations to spend your savings, but “slow and steady wins the race” applies here. Many people try to save by giving up something they really like and are actually surprised when they give in and stop saving money.
Ultimately, the most important question is this:
“Where Do I Find the Money to Save?”
The short answer is that you become a bargain hunter. Decide that you are going to find the best deal on everything you buy. The internet has made the world smaller and opened a lot of doors. For bargain hunters, the internet is even better than coupons. Whether you need a car, an insurance policy, clothing or food, the internet can often help you find the best deals. For food and everyday necessities, you can shop around at a few stores and get to know who has the best prices for which items.
The Quintessential Question
If you want to maximise your savings potential, you simply need to ask yourself one question before you buy anything: “Considering my financial situation, is this the best decision?” This will cause you to think twice before buying anything. That question alone will keep you from making foolish purchases.
Check Out Approved Financial Planners
If you can save even ten percent a week, we can help you invest it wisely. For more information, call (08) 6462 0888 today.