Saving money can be one of the hardest things to learn. It takes discipline, commitment, and knowledge of resources to help you with this process. If you are lucky enough to have the opportunity to access people and resources that are going help you achieve the skills necessary to save money, take the opportunity. This ensures you will acquire funds for those important points in your life, such as buying a car, moving, or that desperately needed vacation. Saving money is a necessity. Once you have that skill, you are set for many things that lie ahead.
The best tip you can learn is do not quit spending money cold turkey. It never works. Think about when someone quits smoking, if you quit cold turkey you want it that much more. The same is with money. To ease the temptation of spending what you have worked hard for, take ten percent of your pay check and put it aside. Take it out in cash so when it is gone, it is gone. That ten percent is your allowed spending money. This way you still feel like you have control over your finances but at the same time the money keeps adding up in your favour.
Another way to save money is to create an account that has restrictions on it. Restrictions meaning going down to the bank, sign papers, and give a reason to take out the money. Create it so it becomes extremely inconvenient to take out the money. Therefore you are less likely to put the effort in to withdraw anything, unless, it is extremely necessary. Also, give your bank authority to say no. If you are someone who has poor self control, giving the bank that control saves you money, and relieves stress from you as well. Many banks offer different options for these types of situations so do not be afraid to ask. Ask for the different types of savings accounts they have and the restrictions available.
Now that you have talked to someone about the different types of accounts, it is time to look at the interest you could be getting by just letting your money sit there. Aim for something that has the highest percentage, so even if you don’t put a large sum into that account very often, you are still earning money on it. This is great, especially if you are saving for school, or even a retirement fund. Interest makes a difference. It may not seem significant at first but it will grow in ten, twenty or forty years later.
When learning to save money it is never too early or too late. You can start saving at fifty years, or starting teaching your children at five, with a small allowance for chores, and as you giving them this allowance, give them small tips here and there on how to make more money by not spending it, this is key. The more you make it taboo, the more you, or your child will want to spend. Also, teaching yourself or someone else to look around. There are many products out there that are the same thing but different prices, never settle for the first thing you see. Look around. The more you look the better deal you will find. This goes for cars, computers, furniture, the list goes on. By learning these small things to help save money, you will greatly benefit in the future, and be more comfortable with any financial situation you come across.