Spending less than you earn and saving money is the result of a hundred small every day actions.
Planning, budgeting, tracking your expenses, signing up for high interest savings accounts are all useful personal finance tools, but saving money happens when we take action.
Saving money isn’t the result of a single decision but the sum total of all the little decisions we make everyday. Our everyday habits and actions are what impact on our ability to save or not.
We may draw up a budget and plan to spend less but if we don’t take action, if we don’t stop and think every time we are about to spend then we will never make budget.
Knowing why you spend is just as important as knowing what you spend your money on. Habits can only be changed if we are aware of them and if the new habit is easier than the old one. If you spend because it’s easier than not spending, make it easier not to spend.
Saving money isn’t just about planning and budgeting. Saving money happens when we:
- remember to turn out the lights
- decide to wake up a few minutes earlier to make lunch for work
- say no to another pair of shoes
- shop around for the best price on a product
- decide to make dinner rather than get take out
- schedule our bills so they don’t become overdue
- spend a few moments automating our savings
- decide to wait an hour to call interstate and get the cheaper phone rate
- say no to the chocolate in the checkout
- have friends over rather than go to the pub
- take the kids to the park rather than the movies
- stop spending