For some, saving money can be hard. You may want to enjoy your hard earned paycheck by spending it on something you want.
Unfortunately, many people usually end up spending the money on things that are considered money wasters. This leaves you with nothing to show for your hard earned money.
If you consider yourself to be more of a spender than a saver, there is hope for you. Let's take a closer look at how to become a saver when you're a natural spender.
Become Aware of Where Your Money Is Going Each Month
The first thing you want to do is look at where your money is going each month. You can do this by tracking your expenses.
Write down everything you purchase for at least one month. This will be an eye opening experience. You'll quickly see how much money you're wasting each month.
Multiply Those Money Wasters by One Year
Take the cost of something you purchase on a regular basis and see what it costs you over the course of a year. You'd be amazed.
That $60 video game you purchase each week is costing you $3,120 before taxes. You could purchase a used car for the amount of money you're spending each week on just one game.
Look for Ways to Enjoy the Things You Love for Less Money
Once you're aware of how much money you're wasting each month, look for ways to save on the things you love. For example, instead of buying that $60 video game, rent the game and see if you like it first.
In most cases, you'll play the video game for a couple days, beat it, and move on. Why waste $60 for one game, when you can rent video games for around $20 a month?
Put the Money You Save Into a Savings Account
After you've found ways to save money on your purchases, put the money you have leftover each week into savings. For example, instead of buying that new video game, put $55 into your savings account ($5 per week will cover your subscription to the rental service).
The more ways you find to save money on purchases, the more money you'll have to put into savings.
Save Money Automatically
Last, but not least, set up an automatic deposit to your savings account. The money will be pulled from your savings account each week, every other week, or once a month (whichever you prefer). This makes it easier to save money because it will seem like paying any other bill that is paid automatically.
You're not going to transform from a spender to saver overnight. However, becoming aware of where your money is going and learning to cut the cost of purchases can make it easier to have money to save. More importantly though, setting up an automatic savings account will make things even easier.