How to Save Money by Working on Yourself

By Eddie V. — Published April 12, 2018

How to Save Money by Working on Yourself

We all want to live secure lives and the cold hard truth at the end of the day is that money plays a key role in ensuring this. But, how can one make sure that they are financially secure? Well, a lot of it has to do with working on yourself.

You see, saving and investing money to achieve financial objectives is directly linked to our attitudes and behaviors. To put it simply, the one thing that people need to understand about money management is that it involves striking a fine balance between wants and needs.

By striking this balance, one can enjoy the more short-term joys of life while preparing for the future at the same time.

Here are some tips to make your efforts less cumbersome.

Understand the Difference Between a Want and a Need
The difference between wants and needs can be simple, but the reality is that a lot of it is subjective. For instance, let’s look at food. Food is a need. Without it, you won’t survive. But, chocolate ice cream is food too.

Do you really need chocolate ice cream to survive?
The keyword here is “survival”. A need is anything that directly has an impact on your survival. Anything that you can live without is a want. You don’t need a designer t-shirt to survive, but having some good, high-quality clothes is necessary.

So, every time you’re planning to make a purchase, think of whether you really need it. Now, we aren’t saying you have to live frugally at all times and make unnecessary sacrifices. The idea is to eliminate expenses that you truly do not need to engage in.

You see, some of our desires are fleeting and we must identify them to manage our money better. A craving for junk food is a fleeting desire that will disappear eventually. By identifying it and consciously controlling it, we can avoid the unnecessary expenses that come with satisfying such a desire.

Always Ask Questions
Every time you’re about to make a purchase, ask yourself repeated questions. Let’s say you’re buying shampoo. Shampoo, in general, is a need because it’s a hygiene product and personal hygiene is important for many reasons including, obviously, your health.

But, do you really need a $5 shampoo, when a $2 shampoo can offer the same benefits?

Asking questions like these can make you think twice and that often results in a wiser and smarter financial decision.

Be Content
Humans desires have no limits and we always seek out things that we don’t need or aren't even truly interested in. How many times have you walked into a store and bought something because it looked cool or interesting, only to realize two days later that you have no interest in it whatsoever?

Well, many people do this often and this is a behavior that needs to be regulated. Learn to be content with what you have. It is okay to spend on nice things once in a blue moon, but never make it a habit.

Avoid impulsive purchases. As we stated earlier, always think and ask yourself if you really need or even want what you’re tempted to buy.

Establish a Budget
Create a budget. This is something that you must do if you want to have control over your finances. A budget allows you to set a goal and achieve it. Plus, it can also help you realize your priorities.

It becomes much easier to ignore irrelevant wants and superficial desires that would otherwise burn a hole in your pocket...




Related Articles