5 Tips for Saving Money

There are all kinds of great resources available for money saving strategies.  Here are my top five favorites.

1. Make it automatic.

Automatically deposit 10% of everything you earn into a savings or investment account.  The key here is automatic.  If the automated route is not possible for your circumstance, then develop the habit of immediately transferring the funds.

2. Forget about it.

Once you have established the automatic savings, leave it alone and let it grow.  Albert Einstein called compound interest the 8th wonder of the world and is quoted as saying, “He who understands it, earns it; he who doesn't, pays it.”

3. Pay in cash.

I am taking about actual paper bills.  There is a significant psychological difference between swiping a card or tapping a device and handing over a stack of cash.  You will find yourself Thinking twice before making impulse purchases and you will have a better appreciation for the real cost.

4. Beware of subscriptions.

When was the last time you took a close look at all those little monthly subscriptions?  For one thing, they can add up quickly.  Often they are forgotten and frequently go unused.

5. Keep your goal in front of you.

To stay on track we all need a strong reason why.  Get clear on your own “why” and keep it in front of you.  Post your “why” somewhere you’ll see it daily.