How to Learn to Save Money: Remove Negative Factors and Use the Best Practices

February 15, 2023

By asking yourself the question, “how do I learn to save money?” you are taking the first step toward sensible consumption and order in your finances. This approach will allow you to get rid of debts and acquire things that you previously only dreamed of.

Saving money is built on certain rules, but there are also specific techniques that allow you to carve out extra money where it would seem to be impossible. Let’s find out what prevents people from saving money, how to deal with this problem, and give you specific ways to save money.

Reasons to Save Money

The right way to start saving is not by setting a goal but by working through your fears. It happens that the process of saving instills fears that you will have to severely curtail yourself and deprive yourself of the pleasure and joy of life. In order to avoid such an understanding, you should gradually get used to the idea that it’s time to start saving. A good place to start is when there is an increase in income, such as a raise in salary, a jackpot at an NZ online casino, or a part-time job.

In reality, the process of saving isn’t affected by an increase in income. You can start saving at any point in time. The money you save will be a good help for your future well-being.

The next step is to refrain from spontaneous spending:

  • You need to understand that a momentary desire to please yourself with a new thing, just getting a paycheck, is not a need but a need for pleasure. As soon as you parted with money and got a coveted product or service – joy was no more, and the finances have already suffered.
  • Analyze and formulate triggers, reasons, and situations in which you most often make rash purchases. Someone is “treated” shopping after a quarrel in the family, someone from the problems at work. In advertising, consumers of this or that product look happy and successful. But buying the promoted product will not do the same to you; a new TV won’t give the gift of harmony in relationships, and the latest smartphone does not guarantee a dizzying career.
  • Be aware of exactly when you tend to throw money around. Often it’s when you are hungry, afraid of something, stressed, intoxicated, sick, or tired. At these times, shopping serves as an artificial source of positive emotions or a way to spur them on.
  • Think about what underlies your desire to buy new things or services. Usually, it can be traced to a desire to achieve something specific. For example, a girl who buys up all the new cosmetics, in fact, dreams of meeting her love. You need to understand that you can get what you want without shopping. A good result can be achieved by thinking about your actions, the right goals, and strategic thinking.
  • The brain will always look for tricks to avoid following a long-term plan. For example, “the purchase has already been made, nothing can be returned, why drive yourself into guilt for nothing?”, “I can never achieve what I want anyway; I cannot torture myself,” and thoughts similar to these.

Some will work through these points with ease. Some will need a lot of time and maybe even someone else’s help. But this stage is a prerequisite for obtaining a stable result in the long run.

5 Rules for Saving Money

It’s necessary to understand the mechanism of the process of saving and the formation of savings. You should not think that you can save only when your income grows. In fact, everything is done in the opposite way. The first step – mastering the skill to control finances at any level of wealth, and its growth will surely follow.

Researchers have found that people with a high level of wealth are very careful and pragmatic about their own finances. They are aware that otherwise, they will inevitably go bankrupt.

There are several recommendations that can be followed to gain financial independence:

  • Always track your spending to the nearest penny. Knowing how much and where your money goes each month will help you understand which categories you can use to trim or optimize your expenses.
  • Identify all of your sources of income. You should aim for them to exceed expenses while leaving some spare cash. Gifts and winnings can be left out.
  • Start saving. When all of the expenses and income for the month are identified, you can calculate how much or a percentage of the incoming funds you can set aside each month. Once you’ve determined it, strictly follow your goal without skipping a beat. Even a few thousand over time will turn into seed money, which will be a start to financial independence. You can learn how to learn to save even with a small salary if you really strive for it. All the money you have saved is an untouchable reserve. If the temptation to spend them arises too often, reconsider where your spending goes.
  • Choose a way to record your accomplishments to your liking. You can paint the cells with the accumulated amount. You can fill out a success tracker, and you can simply keep notes in a special notebook. Such notes will be a good motivation and a visual indicator of the result of your labors on the way to financial freedom.

You should plan your finances, going for the following goals: create a financial safety cushion, optimize your personal budget, and not completely deny yourself the pleasures. Always strive for balance and harmony.

Areas Where You Don’t Need to Save Money

Here are some basic areas where saving money isn’t acceptable:

  • Health. If you don’t deal with the problems of your body for a long time, sooner or later, it will turn into a serious financial loss. And remember, no health – no possibility to earn.
  • Education. New knowledge means the expansion of your horizons, spheres of influence, and possibilities of earning. You can learn skills that increase your value in the job market, as well as understand the best ways to invest.
  • Rest. The brain just needs it. Any job without time off has a limit, and beyond that is burnout. Look for an opportunity to switch and change environments. It will give a reset and a new perspective on problems.
  • Insurance (health, real estate, car). Of course, the occurrence of insurance events is extremely rare or does not occur at all. However, even a single episode can recoup all costs.

The listed ways to optimize the family budget will save you up to 30% of your monthly income while not denying yourself basic needs, entertainment, and pleasures.

About the Author Kyrie Mattos

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