Saving money sounds like a complicated affair, what with the myriad of expenses you need to attend to as an adult: utilities, rent, credit card bills, loans, food. It’s a vicious cycle, and many people often find that they can’t help living from paycheck to paycheck. Still, it’s part of life, and with every penny you spend, you learn something important about saving.
Here are some life lessons you need to take to heart when it comes to saving money.
Saving money is difficult, but not impossible.
Giving “I don’t have any money left in my wallet to put into savings” as an excuse is the wrong way of going about saving money. Rather than identifying obstacles to saving, look for ways to save instead: how can you shave money off your grocery expenditures? How can you turn trash to cash? How can you get a better deal on products and services? There are many ways for you to save money, such as using vouchers and coupon codes for food items from sites like http://www.totaldiscounts.co.uk, doing away with things you don’t need (like that mocha frappe-donut combo you order every morning), and planning meals in advance (and bringing packed lunches to work) are just a few.
Savings should always be a priority.
Many people think that savings are what’s left after everything else has been paid for, but a change in mindset can surely turn things around for you, especially if you want to achieve your financial goals. Contrary to what you’re used to being told, the amount of our expenses is not set in stone. Set aside some money as savings as soon as you get your monthly income, and adjust your spending from there: go the more economical alternative when it comes to transportation and food, consider if something is a need or a want before purchasing it.
Investing in good health coverage pays off in the long run.
Even if in you’re in great shape—you work out regularly and eat healthy—health insurance is a must. A medical emergency or health problem may crop up that may leave you scrambling for funds (or make you pay more than expected) if you’re not covered. Health insurance is a wise investment that will pay off in the long run.
Having options is a bigger motivator than having stuff.
Saving money so you can buy something is one thing; saving money so you can have better opportunities in life is another. Saving money isn’t so you’ll be able to purchase the newest gadgets, a hot new car, or diamond-encrusted shoes, but so you can have the freedom to do what you want to do and maximize your choices. Have enough money and you will have the freedom to quit your office job and travel the world, stay at home to raise and educate your child, move to the beach, or yes, even switch to a lower-paying, but more fulfilling job that you love. Of course, the caveat is you should have enough money saved (or better yet, investments as a passive income) for you to have those options.
Spending money wisely saves you money.
Be a smart spender and you’ll be a happy saver. Consider your budget: when going out for groceries, make sure you have a list and stick to it (avoid impulse buys!). Many people go wild once they have money to spend, without thinking of setting aside money for emergencies and insurance. By practicing frugal living now, you’ll be able to save money for the future.