How to Save Money – 6 Ways to Save Money to Invest in Your Future

How to Save Money

Spending money is a major factor that is affected by how our minds work, and understanding how your spending habits are controlled by your mind means you can get a step ahead of the game and find ways to save money.

How to Save Money – 6 Ways to Save Money to Invest in Your Future

We’re going to give you some mind hacks that you can apply to your life and save more money each month.

1. Use Cash

When you go out to eat, to buy groceries or spend money on anything else, try to use cash instead of electronic money such as credit or debit cards. When you use cash, you have an emotional attachment to the physical material paper, and its actually more difficult to hand over cash than it is to swipe a card.

Simply because it feels like you’re giving less when you’re swiping a card, try to always keep cash on you and limit the swiping.

You can increase this effect by only carrying larger bills and keeping the smaller bills at home in a jar to deposit in the bank later. By only carrying the larger bills, you are less likely to want to break those bills on small and unnecessary items that you don’t need.

2. Automatic Deductions

This is an amazing tip because you can set it up to not even know the money is being taken out. Whether its through a work payment plan, or by a standing order you set up with your bank, make sure you have a certain amount taken from your income and send it to a savings account that you can’t withdraw from.

After many years, you will benefit from the compound interest being accrued and the money will grow into a nice chunk of change.

See: Financial Freedom – How to Invest and Become a Multi-Millionaire

3. Monthly Statements

Start a monthly balance sheet to see where your money goes. When you start to keep a track of your income and expenses on a monthly basis, with detailed lists of expenses, you can see exactly where your money goes and find more ways to save money.

Write expenses on the top, and add in your monthly payments like rent, bills, and deductions. Add space for unpredictable things such as some snacks and entertainment. Underneath the expenses, write your income. At the end of each month, add your total expenses and income to find out if you are in profit or in deficit.

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By doing this, you find out that the little expenses each month add up and you will find ways that you can cut back on things that you don’t need as well as finding ways to save money on the things that you want.

4. Learn Self Control and Self Discipline

Learning to control your impulses and understanding your mental state can go a long way in helping you to save money.

If you are out and you feel the sudden pangs of extreme hunger, instead of grabbing some expensive fast food, grab a bottle of water and wait until you get home to cook a meal. The water subdues your hunger pangs and allows you to eat healthier and save more money.

The same can be applied to other purchases, such as the new technology item that you think you need to buy. Try to delay your purchase and see if you really want the item you think you want to buy. Not only is the price likely to go down in that time, but you may decide that you don’t even need the item after all.

By controlling your sudden impulses and your need to have something in that moment, you teach yourself the importance of self discipline, which is an essential skill to learn if you want to save money and be financially successful.

Delayed gratification will help you in many aspects of your life, not only saving money, but by working on your goals even when you don’t feel like it.

See: Self Control – 5 Steps on How You Can Master Self-Discipline

5. Turn Prices Into Hours

No matter what you do for work, you either get paid hourly or the sum total of the hours you work divided by your income each month can give you an hourly income rate.

Now that you are clear about how much you get paid for every hour that you work, use that as a guide for how many hours you would have to work to make the next purchase. If you really want something, you will still get it regardless of the number of hours you have to work to get it, but if its a frivolous purchase, you will think twice before getting it.

This goes into value investing and it will help you understand the value of what you’re buying and the opportunity cost of what you’re giving up for what you’re buying better.

6. Increase Income Instead of Decreasing Expenses

Most people only tend to think about how to save money and they look for ways to save money in their every day lives. What you need to do is shift this way of thinking and instead of thinking of ways you can save money, think about how you could be making more money.

If you’re saving money to buy something, the best thing you can do is to focus more on how you can increase your income. Simply focusing on how you can make more money will help you dramatically more than only focusing on reducing your expenses. If you are already living on a tight budget, any new purchases or a higher amount of savings contributions will only be possible if you increase your income.

Invest in yourself by finding good books to read on personal finance and investing, time management, and learn some of the habits of successful people. Use these guides and find ways you can make more money by starting your own business or finding new ways to increase how much you make in your current job.

Money Master the Game by Tony Robbins - Financial Freedom through Investing

Author Profile

Mehdi KA
Mehdi KA
Mehdi KA is an inspirational blogger and motivational speaker. He has traveled to over 43 countries and enjoys writing as a way to share his experiences and life lessons.
In theImportance.net he shares content that he believes can help people to achieve their goals and live a fulfilling life.

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