Saving money is much like losing weight. Both are simple concepts (spend less than you make to save money…eat less and exercise more to lose weight) but neither are easily accomplished. These five tips will not only show you how to save, but also lose some weight in the process.
1. Get mad.
At yourself, at your sloppy spending habits, at your lack of discipline, at the expensive car that you knew you couldn’t afford. Are you sick and tired of being sick and tired? Whether you are saving money or losing weight, you need this emotional energy to make it happen. Dave Ramsey uses this example: if your child was dying and needed a $15,000 operation that could only be paid for with money you saved in the next nine months, could you do it? Of course! You would sell stuff, spend less, work extra jobs and do what it took. Why? Because you would be emotionally motivated.
2. No More Excuses.
“We don’t make enough money” and “Things just keep coming up” are lame. Starting today, you are no longer a victim of circumstances; you are responsible for your behavior. Once you decide you are going to save (or lose weight), you will figure out how to do it.
3. Set Goals.
Ask yourself, “Why do I want to save?” Then be specific with your answers. Save so you can pay off debt in 18 months. Save so you can have know the security of a great emergency fund. Save so you can be savoring your future retirement. If you don’t give your savings a name, you will drift away from the habit or impulse on that leather couch you just “had” to have. Set goals.
4. Make it automatic.
If we have ice cream in the house, I will eat it. Why? Because I don’t have the will power to resist. Janice and I know that will power alone won’t make us good savers, so we make allowances for our lack of will power by having our savings automatically transferred from our checking account every month.
If you are married, you must agree on your goals and hold each other accountable. If you are single, you need a great friend who is tough enough to hold you accountable.
Like I said, these are simple concepts. So get mad and get started…today.