It doesn’t take a lot of common sense to understand that the more money you save, the better off you’ll be financially. But saving can be hard. In fact, when you live some where like Los Angeles or New York where the cost of living is through the roof, it can seem damn near impossible.
When you’re living paycheck to paycheck, it can be hard to see beyond next week’s bills.
But know this: it’s not impossible to start saving now. Sometimes, all you need is a little mental motivation.
Think about it this way: if you’re living paycheck to paycheck right now, relying on the hope/idea that at some point you’ll snag that job or promotion that will elevate you to a spending status where you can afford to buy a new car or house, you might never get there. But if you start being savvy with your money now, you might not need to snag that pay bump to afford the things you dream of.
Because saving is a mindset.
Here’s another point to ponder: if you’re living paycheck to paycheck right now, and its not because rent takes up 75% of your income and the other 25% goes to groceries and debt, it means that you’re spending any leftover money you have every month on things that aren’t a necessity. Often, even in a 75/25 situation involving debt payments, there are still ways you can cut your costs. So if you haven’t already gotten out of the habit of spending every dime you own, what makes you think that having a fatter paycheck will remedy your excessive expenditures? Take a lesson from Kanye and realize that having millions (or billions!) doesn’t necessarily guarantee your financial security.
Instead, get into the saving mindset: always strive to live one step below your means.
Simply put, this means that if you live on an income where you can afford to go out twice a week, live with the mindset that you can only afford to go out once a week, pocketing the cash you save not spending an extra night out each week. If you want to save more money faster, you can get more drastic. Currently, I tell everyone I’m too poor to pay for valet parking, go out more than once every two weeks, and spend full price on a movie ticket more than once or twice a year. I’m not going to tell you how much I could afford, because honestly, I don’t even want to know. As long as I live in this mindset, I’m saving money. The second I “let” myself afford more, I don’t.
So if you’re not already in this line of thinking, start training your brain to think this way now. Why? Because you’d be amazed how much you can save up by saying no to a $5 coffee here, and a $20 movie there. You might discover that in a few years’ time, you have enough to pay for a new (or new to you) car, cash up front! Or, if you’re a big dreamer like me, a down payment on a house. 🙂
So get savvy, savers!