What is the best way to save money, so you don't have to spend it when you see it?
I have envelopes that I label. When I get my paycheck, I take 20% of the money out automatically. Then the rest, I spread out. It will vary on your budget. Take out the money for bills like rent, lights... etc.
Label the envelopes:
Only spend the money you have in those envelopes on what they are labeled. You see a sweater on sale, but your clothing budget is gone? You'll just have to wait. And always keep a twenty or ten hidden in a pocket or bureau draw, for emergencies ONLY.
Then, at the end of the month, you should see that you have more money then you originally thought.
I advocate the 80/20 rule, and apply it to most things. What the 80/20 rule generally is, is you live on 80% of your NET, and net is important here because we never see our gross. The remaining 20% of our net we put into a savings account, high interest bearing account such as a CD, money-market or mutual fund. Or we invest it in the stock market (having done your homework well on the latter of course before diving in). You then apply that 80/20 to every big ticket item you purchase.
If you can afford a $25,000 car, start looking for one that will only cost $20,000. If you can afford a $200,000 house, start looking for homes for $160,000.
One very important thing to keep in mind is that saving is not about sacrificing. It's about living within your means today so that tomorrow offers more financial security and choices. People who 'live for today' and spend like they are going to die tomorrow are actually ultimately sacrificing more than those who put aside money for a rainy day. They typically work more hours to pay for stuff, and they work many more years because they can't afford to retire.
I agree with Phoebe. My husband and and I took the Dave Ramsey Financial Peace classes and learned that you budget 80/20 and SAVE first and spend second.
Most of us, if left to our own designs, would save whatever's left over at the end of the month, but usually there's nothing left over. So if we save first and spend second, we can be certain that there's something left over at the end of the month.
rely less on credit cards. and keep a small amount of cash with you. you will feel less tempted to spend
For me it comes down to the basics. Before you take your money out of your purse or wallet ask yourself the basic questions, "Do I need this product or do I want this product?". If you want this product then you should probably walk away from the purchase.
Secondly if you need this product and want to go ahead with the purchase ask yourself these other questions, "Can I get away with a cheaper alternative product? Can I buy a secondhand product of the same thing? Will they accept cash so I can save some money on the purchase? Could I make this product for myself? (this obviously won't work for all products), Could I borrow or hire the product for a short term to get by?" If you answer yes to any of these questions then you should walk away from the purchase and save yourself some money.
Finally just think how much money you earn in an hour, then divide the product cost by this amount and then you are left with how many hours it takes to earn the money to buy the product. This is a good physiological tool to use especially if you don't like your job or it is laborious for every dollar you make per hour.
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