I’m going to be very straight with you here – if you do not save, then you are setting yourself up for massive problems and unnecessary stress.
It is probably the most common advice you have gotten since you were little, yet the majority of the people don’t apply this.
Let’s take drugs and alcohol abuse as an example. All our lives we have been warned against hard drugs and alcohol addiction. Billions have been spent to warn the public about it.
I bet however despite the warnings, you know of or heard of someone ignoring this advice and lost everything they have because of it.
The same applies to saving! We all experience months where our expenses are way more than what you budgeted for. The only way to survive this, without borrowing money and putting yourself in a stressful situation, is to have savings that will bail you out!
So what is the best way to ensure that you save?
Here is the easiest way I know of when it comes to forcing yourself to save.
When you get paid, immediately, before paying anything else, put away a portion of it into a savings account. Start off by an amount that you can afford.
Most people recommend 10% and if you can put away 10% or more, then it is great. If you can not, put away at least 5%. The point is to start somewhere and to create the habit. When you create the habit and commit to it mentally, then it becomes much easier.
If you decide to put away 5% then increase it by 1% every month until you eventually get to 10%.
Why does this method work?
It’s actually very simple. If you don’t have the money, you can’t spend it! As the saying goes “out of sight, out of mind”
So if it doesn’t reflect in your account, it won’t make you tempted to spend it. Just give it a try and see how effective it is.
If you know of a good way to force yourself to save, please post your comments below. I would love to hear your thoughts.