In our consumer based culture, saving money is extremely hard. It’s your money and you earned it, so why not go out and spend it on something you don’t need? I mean, lots of other people buy things that they can’t even afford, and wrack up massive amount of credit card debt, so why shouldn’t you be able to buy things you actually can afford? You can’t take it with you, am I right? However, it is important to prepare for when you maybe aren’t doing so well financially. You need to have an emergency fund saved up, at the very least. And what about buying a home? Saving for retirement? Paying off debt, even if it is “good” debt, like student loans or a mortgage?
When you are making money, it’s extremely unwise to spend it as soon as you get it, and then be left in trouble when you do actually need it (I’m sure we all know at least one of these people). Also, I find it much more gratifying when my money is applied to actual financial goals, like building my savings account, paying off debt, or traveling, rather than frivolous impulse buying. Think about it. Would you rather have a week long, exotic vacation, or a hamper full of clothes that were trendy last year? Your dream home, or a closet full of clutter from unplanned Walmart/Good Will trips? Delaying gratification can be difficult, but the results are so much better in the end.
For tips on saving more, and keeping control of you savings, check out this article by Becky at Your Modern Family. Any money you save can be applied to retirement, paying off your mortgage faster, or even a well deserved vacation later:
-Pay your mortgage more often- paying every other week can take 8 years off your loan
-Don’t buy what you don’t need- Every time that you want to spend money, just take that money and put it into a jar; add it up at the end of two weeks.
-Have some of your paycheck automatically put into savings
-Don’t use credit cards unless you have to. Need to pay medical bills? Go ahead. Flat screen TV? Not so much.
-Create a budget and stick to it; don’t forget to budget “entertainment” money! Being smart with money doesn’t mean you can’t have fun.