Saturday, April 25, 2015

Self-Control and Saving Money

Self-control is one of the many virtues that is something that can be learned by each and every person.  And learning it will prove to be very significant in the way people handle their finances. Possessing a sense of self-control somehow helps people to put aside money instead of spending it. It helps people to resist the terrible "itch" they get to spend money the moment they get hold of it.

This is a common pitfall for most people. Often, when people come into a certain amount of money, they have this tendency to rush out and instantly satisfy the irresistible urge to splurge on anything they lay their eyes on.  This is a very dangerous mistake.  Sometimes people fail to recognize the idea that the future has to be considered, too, whenever spending and savings enter the picture.

The cliché "nothing is constant" still rings true until today.  The stuff people see now as shiny and new will fade and rust away later.  And patience and self-control makes people realize and think about the many other more important things that requires more of people's concern, specifically money-wise.  

A person's financial success starts with a conscious effort to control one's expenditures and save up for the future. 

Realizing the high correlation of self-control and saving money, the next question is, how do we start learning and acquire this virtue of self-control, which seems so elusive?  Well, there are many ways which people often take for granted. Here are some of the less complicated ones that are easier to follow.  Learn them, and hope they grow on you. Try to apply these easy steps in your daily living and surely they will bear you wonderful fruits on your way to financial stability and security.

1.  Do not purchase items on impulse.  Consider thinking if you really need the item, or maybe you can still put it off for later when you really have the need for it.  

2.  Identify the your needs from wants.  You wouldn't want to spend so much on something that you may regret doing so in the future.

3.  Look for a person who can serve as a role model for you and adapt a financial life similar to what he does. In this way, self-control will seem very easy when you see that others are actually doing it.

Tuesday, December 9, 2014

Self-Discipline And Saving Money

A great way to save money is to be aware of the fact that one has the power to define the state of his finances specifically through a conscious effort of disciplining the way one spends and controlling one's expenditures.

Self-discipline will most definitely be the key to reducing one's debts therefore increasing the possibility of growing one's savings.  And in the long run, improve one's standard of living.

According to money management book author Robert Hastings, "Undisciplined money, usually spells undisciplined person".  Therefore, if one notices how his hard-earned money seems to slip away so darned easy, then it is about time that he rethinks his ways and try to discipline his unpleasant spending habits.

One of the essential keys to successful money management, specifically saving money is to possess proper attitude.  Self-discipline is at the topmost of this proper attitudes list, of course.

Only with self-discipline that people recognize that they do have the freedom and power to do the right thing over doing as their impulses dictate.

Sounds complicated?  Well, not really.  Knowing fully the fantastic rewards of disciplined money in a disciplined person's hands should be motivation enough for one to do all that is humanly possible to achieve that elusive financial stability everyone hopes for.

Here are some helpful money saving tips.

1.  Realize that the most convenient method of building one's wealth is through saving money.  Money is the only sensible material to save.

2.  Focus expenditures on the things one needs.  Live day-by-day knowing that you have enough.  

3.  Avoid buying on impulse. Take your time when buying, especially the expensive items.  If you really need it, it would most definitely not slip your mind.  Otherwise, if you go along forgetting all about it, then it isn't really worth the money you have to spend on it at all.

4.  Credit card debts hold the number one slot as the cause for financial drains these days.  Control your spending by using your credit cards less.  Or for unavoidable circumstances when you really have to use the credit card, consider using the ones that charge less interest.  Then dump the high interest ones for good.

No matter how you look at it, saving money is so easy to do.  A little bit of imagination, some creativity and a lot of self-discipline will take you a long way in keeping hold of your hard-earned money.

Monday, November 24, 2014

Essential Money Saving Tips for Students

It is easy to get caught in the rush of things when you are in college. In the midst of studying, part-time jobs, socializing and extracurricular activities that you have, you are most likely to forget one of the most important things, which is straightening out your finances. 

Here are some tips on how you can save money as a student:

1. Plan ahead. 

If possible, do this even before you move into your dorm room. 

Check if you are eligible for scholarships and other grants before signing up for any form of student loan. 

Construct a cash flow. First, where do you expect to get money from? Make a list of your “income”,  be it from your parents, your student loan or your part-time job. 

Then forecast your expected monthly or weekly expenses for food, books, etc. Once you have set aside a budget, be strict with yourself and stick to it. 

You will never know what unexpected expenses would come your way so it is better to have a downfall for financial emergencies. 

2. Save on food. 

One of the major expenses that you have as a student which you might have ignored when you were still living with your parents is your food allowance. Avoid eating at fast food outlets, as this is most likely to ruin your budget. Pack your lunch and plan your meals as much as you can.  
3. Take full advantage of student discounts. 

Those ID’s in your wallet are not just for show.  Student ID’s and memberships in organizations are honored in several establishments which offer discounts. 

Also, patronize a certain establishment regularly and you are bound to get bonus cards for being a loyal customer. 

4. Use your cash as much as you can. 

Since you already have a draft of the items where you will spend your money, it is easier to monitor your cash flow. Avoid using your debit card when you have cash with you. Use your credit cards or write checks only in emergencies. Having debit cards, credit cards and checks handy might lead you to overspend. 

5. Keep yourself busy. 

Join clubs according to your field of interest. 

Keeping busy will let your mind wander and help you stay away from things that you are likely to spend money on when you get bored. Examples of these are snacks, movie tickets or game rentals. 

You will be surprised at the amount of money that you will actually save by spending less on luxury items, following your budget plan and saving for financial emergencies that you are most likely to get as a college student. 

Wednesday, November 12, 2014

Starting Young: Teaching Teens to Save Money

Parents mostly complain that teenagers do not listen to them. The opposite is true when it comes to advice regarding 'money matters'. Teens actually welcome their parent’s input about their finances. 

In the past few years, teenagers have earned billions of dollars with part-time and summer jobs. Some have spent most of what they earned, while others saved most or even all of it for a big purchase, or for their college education. 

Kids these days are becoming more and more aware of their family's source of income and financial status. They apply these money-spending principles when they venture out on their own. Thus, it becomes more of a parent’s responsibility to start “training” their teenage kids to use their money wisely. 

Here are some ways on how you, as a parent, can teach your teens to save those hard-earned bucks: 

1. Lead by example. 

 With your lifestyle, the children will see how you spend your money. If they see you allotting a certain amount for a specific household need, they will eventually do the same when they get to earn their own keep. 

2. Help your teens get a bank account. 

Establishing a bank account under their name would give them an instant financial responsibility. Sit down and explain to them how to manage their own account, and the “rewards” that they get once they save enough. Their savings could go to their college tuition, or a big purchase like a car. 

 Additionally, it gives them a sense of accomplishment once they have saved up, with something concrete to show for it. You may check out the special benefits that banks offer for teens who open their accounts at such an early age. 

3. Construct a “spending plan”. 

Once they hear the word 'budget', teens tend to cringe at the mere thought of having to restrict the spending of their money. Instead, you and your teen son or daughter could build a “spending plan”. This would get them excited, and think of ways on how they can wisely spend their savings. 

 Also, have them list down their earnings versus their expenses. Let them know the difference between the items that they need and the luxury items that they want, which they can actually do without. 

 4. Make a “mock” investment in the stock market. 

Make them aware of the options that they have financially. Casually introduce to them the business part of your daily newspapers and have them make “mock” investments for companies who manufactures products that they like. Monitor the stocks together and this would give them another option of investing their money in the future.