Save, save, save. Save now. Save your money. Make a budget. Open a savings account. YOU HAVE TO SAVE YOUR MONEY.
You know this, right? And still, for many people, it doesn't mean they will actually start to save their money. Luckily, blogger and personal finance expert Ornella Grosz lends some great advice to change your mindset and, hopefully, your spending habits, courtesy of Budgetsaresexy.com.
1) Treat every dollar the same.
Whether it's four bucks for a Starbucks coffee or $1500 for a shiny new state-of-the-art computer, keep in mind that a dollar is a dollar. Every time you spend, think to yourself: do I need this? Can I afford this? Is there something better I could be spending my money on? Getting into this mindset as soon as possible will help you mentally prioritize your money.
2) Automatically save.
Set up direct deposit to go directly to your savings account. This way, you'll save money every month without even thinking about it. It's much easier to keep money in a savings account when it goes there magically without any action on your part. Set it up. Now. Go.
3) Pay with cash until you learn some control.
Having a limited amount of money on you will automatically help you control some spending. With cash, you can't just charge something and pay later. You pay it now, and the money you once had in your pocket is now gone. Until you can exercise self control, carry cash on you -- it's a strange, restricting feeling, but you'll soon realize the nonsense you spend your money on!
4) Treat all income as earned income.
Whether it's birthday money, tax refunds, inheritance, gambling winnings, etc., treat all money that comes into your possession as earned income. Resist the temptation to blow a huge amount of money just because you suddenly have the cash flow. If you think of all of your money as money you worked for, it will become more important to you to save it.
Try these tips from Ornella - I think all are valid suggestions and, better yet, completely reasonable. Let me know what you think here or on Facebook!