Jan 09 2009
How to Save Money in 2009
How to Save Money in 2009
Written by: L Jones
Money is not the most important thing in the world. Love is. Fortunately, I love money.”
-Unknown
So, you want to save some money, but life’s kicking your butt? Well, guess what; life’s kicking everyone’s butt right about now. The collapse of our financial system is looming ominously over our heads. Who knows what the future holds.
Enough with the gloom and doom. If you wanted to hear about that, you could just turn on your local news. What I think you want to know is how you can save a little money in these trouble times. I am going to list a few tips, but bear in mind that these are not normal times. These tips are what I THINK you should consider before you start trying to save some money. Also, keep in mind these tips are geared towards saving money to fulfill short-term goals and not something as significant as retirement savings.
Before I jump right in with my tips, understand that none of these suggestions will work if you don’t have a constant flow of money coming in. You actually need to have money to save money, unlike the myth that you need money to make money (but we’ll talk about that some other time). Alright; here we go. Lee’s tips for saving money in 2009:
* Tip #1: IDENTIFICATION- Have you heard the saying “If you don’t know where you are going, how will you know when you get there?” If you don’t identify where it is you want to go, then you will never get there. So, what does that mean to you? My ten year old daughter loves to spend every dollar she gets on dolls. I’ve tried to explain to her the importance of saving, but her “goal” is to buy every doll she sees when she has the money. Since most dolls are relatively inexpensive, it doesn’t require a strong commitment to saving money, so the suggestion of saving becomes mute. One day she sees one of those mini computers; you know the one’s with the 8.9” screen? Immediately after my rejection to her inquiry, reference me purchasing he computer for her, in her mind, purchasing the computer became identified viable goal worth saving for. The computer becomes a concrete, obtainable goal. Money for a car, college tuition, house or a game system can all be attainable once you’ve identified it as a destination to reach during your journey of life.
* Tip #2: LOCATION – When I get paid, I will rarely go to the ATM to get cash. You know why? If I have money in my pocket, it’s getting spent. The more accessible your money is, the more likely you are to spend it. Where your money is located has a profound impact on your ability to save it. The more difficult it is to get to your money, the less likely you are to make impulse purchases. The less impulse purchases, the more you have to save. You see where this is going. When I identify a need to save money, (Christmas gifts, computer purchase, or car down payment) I will use a savings account that is not easily accessible. Online banks like ING Direct or Emigrant Direct are perfect institutions to help you achieve your financial goals. These banks offer other benefits like higher interest rates, extra money making promotions, e-checking accounts and much more. For those of you fearful of stolen identity; wake up. Your identity can be stolen at a fast food restaurant. When you deal with online banks, there is no middle man to get your information. Think about it. Also, if you are concerned about banks closing, don’t. Unless you have over $100,000 in the account, you are federally insured.
* Tip #3: MODERATION – When you start saving, you have to be smart about it. First, answer this question. What is the most I am able to obligate to this goal with minimal inconvenience? Don’t try to save 50% of your pay if you can’t afford it. You may want to start around 10%. The reason this is important is if you are forced to borrow money from your savings account, because you are financially inconvenienced, you will continue to borrow money even when you are not. The account has now become accessible, which makes you more likely to access it.
* Tip #4: DEDICATION – This is not a tip, but more of a profound statement. If you read yesterday’s post about getting fit, then you know that you have to change how you think about things if you want a different outcome. If you’ve attempted to save in the past and failed in your attempt, you have to change up your mentality and approach. Every failure is a lesson learned on how not to do something. You just have to learn the lesson. If you put workable control measures in place to make reaching your goal less painful (in the wallet), then it makes it easier for you to be dedicated to cause and more likely to reach your goals.
There you go. Remember, identification, location, moderation and dedication. Consider these tips prior to setting out to achieve your goals. Putting the right control measures in can help maximize your possibilities of succeeding. Now get out there and start saving.
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