When it comes to thinking of new ways to save money, remember, most of it basically comes down to these three factors: money management, attitude, and budgeting. What kind of spending habits do you have? Do you overspend or under spend? Where do you cut corners?
Most people, especially the younger generation, do not put any stock into setting a savings goal. They think that saving money means that they will have to get rich quick, which is why they do not set savings plans. Setting a budget and saving up for emergencies are things they are comfortable with. As for attitude, many of them think that saving money is putting money in the “red” – in the sense of sacrificing their wants for a now and then. If they are not willing to forego their wants and desires, then what is the use of setting a budget and saving?
To get rid of this mindset, the best and easiest way to save is to be able to say no. Say something like, “I am not going to buy that coffee anymore because I am going to spend money on a vacation.” Of course, you may still have to pay for that coffee, but now you have your savings space. With your no purchase, you are already starting to lay the groundwork for becoming a better spender.
Another saving tip is to take actions. You really have to make the commitment to start saving money and start seeing results in a few years. For starters, if you don’t give your kid a reason to save – such as buying a new video game instead of clothes for the week – then you have already lost the battle. Kids are creatures of habit; parents have to make sure to find ways to encourage them to do what’s good for them. One action step that can be taken is to talk to your child about saving – both your own money and the money of others.
Finally, you need to set up a savings goal. Setting a savings goal should be easy to do. Just write down how much money you want to put aside every month – and stick with it! The simplest way to set up a savings goal is to actually get your hands on a budget so you can track where you’re spending your money. As you know, kids tend to waste money.
So how do you save money when you don’t have a budget? Simple: by teaching kids the value of money. Explain to your kids that even when you are poor, you can always add more to your savings. Teach kids to think of what they have to go shopping for on any given day and not just what they have to spend. A good example would be to let your kid choose a family vacation instead of shopping for that one item and then go on a shopping spree on the same day.