getting further and further away. What I don't understand is, my friends who make as much or less than my wife and I are able to buy a home. I don't think that we live extravagantly, we pay our bills on time and more than the minimum amount. But, we can never get that extra cash to sock away. We are frustrated! What can we do?" I hear this almost daily. I know it is hard to save. I mean, I have two kids in Catholic Schools, my husband and I both drive alot for our living so gas, car payments and insurance is expensive. We are BOTH self employed and we have to pay our own medical insurance - that is like a mortgage in itself and well let's be honest - we like to go out. Sometimes saving money seems like a joke. So, trust me - I know.
About 5 years ago, my husband and I were not able to save a dime. I would sit on my computer and look at my bills and set us up on a budget, to only fail three weeks later. I even went as far as having every dollar accounted for. How much was spent of coffee, lunches, gas and other daily things. I would set limits of $15.00 a day for our spending - to only feel like I was under house arrest. So that never lasted to say the least.
One day I was reading an article about saving (I can't remember where - sorry). The author was talking about how most people, when they go on a diet wind up gaining weight rather than losing weight. The thought of NOT allowing yourself something makes you want to do it even more, until you take the restraints off. Which for most people it is true. I know when I tell my kids don't stick your tongue on the 9 volt battery - they feel drawn to do it. When I tell my kids not to hit the other sibling - they always wind up hitting the other sibling. Its just in some people to do the forbidden. Anyhow -
The article showed ways to derail yourself as opposed to restricting yourself. Instead of having a budget they suggested to PAY YOURSELF first. Hmm - what a concept.
*Never say you are on a budget - that is a bad word in saving. It sounds like a punishment. THINK REWARD.
*Cut your food bills - (I am not talking about NOT eating, but cutting) STOP eating out. Stop ordering in - or order in ONCE instead of twice a week. Buy food by the day. Don't do a huge shopping. Buy only what you need for that day. (OK, I have kids so cereal is a must weekly buy). But seriously - if you do a big shopping only once a month and shop for the day - trust me, you do save. Also, don't buy lunch everyday. Brown bag it once or twice a week.
*CUT UP YOUR CREDIT CARD - Arrrrghh.. - OK maybe keep one intact for an emergency) But the others - cut em up. Honestly, I don't know why people have more than one. If you NEED more than one then chances are you are over charging. - Oh, and if you are saving one, then I personally recommend that you call that card holder and tell them you are canceling, because they will lower your APR. (Been there, done that). So, keep only THE one with the LOWEST APR.
*Ask yourself - Before buying anything. "DO I REALLY need this?" Whenever I do that - I realize I don't.
*Pay yourself first. When you get your paychecks take out money FOR YOUR SAVINGS first. THEN pay your bills. Here is a rule though, when you vow to do this - write it down. There should never be a missed week. YOU CAN NEVER SAY - "Just this once, I will double up next week" . For some reason, next week never comes and you do it again and again.
*Keep your goal insight. Get pictures of what you want to do or buy when you feel you have enough money, it could be a house from me (self promotion there, did you notice it?) or a car (Not a good move, but hey - its your money) or a vacation (get me a T-shirt) and keep them all over. Place the pictures on your refrigerator, your car or your desk just keep it insight. Sounds corny I know, but it does work.
Good Luck and Happy Savings!
Read -
Why you should do a house inspection.
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