Every person should try this easy way to save money at least once in their lives. At the end of the day, it's one of the best ways to save money because it's not about being cheap, but about getting what you really want. It's so easy that you might not want to try it. Try it out. Here it is:
List everything you've spent money on, everything you're spending money on now, and everything you might spend money on in the future.
Don't just read this and try to figure out what it means. Take the time to write everything down. If you need to, look at your bank statements to make sure you remember and include everything.
Now go through the list and give each item careful thought. Spend the most time on the big things, like the past, the present, and what might happen in the future. If your beach timeshare is only worth half what you paid for it, costs you $1,000 a year to maintain, and you don't use it much, you need to learn from that, not to punish yourself but to make your life better.
If you are honest with yourself about how often you will use that RV and how much it will cost, it could be $250 per day. That's fine if you think it's worth it, but you might enjoy $100 hotels more. Or, you might be able to rent an RV for less money overall, giving you more cash for other important goals.
You can save money without making sacrifices. We all know people who are cheap, save their money, and then do nothing with it. The point should be to save money in one area of life so you can use it in ways that make your whole life better.
What if you find out that you're spending $8 a month on magazine subscriptions you don't read or on insurance for a motorcycle you hardly ever use? Stop paying for them or sell them.
What have you lost by giving up your bike? Is it a big deal? What will you get instead with that $8?
- Save it for ten years and take a second honeymoon with the $1200.
- Use it to pay for a day off work to spend with your kids once a year.
- Put it in the stock market so you'll have an extra $50 per month when you retire.
- If you want to learn something new, buy six good books a year.
- Once a month, make banana splits for the family.
- Give a good cause $100 per year.
When used wisely, $8 a month can do a lot. Think about what you could do if you stopped throwing away $200 a month. That's why you need to figure out what you really want and what you don't want. One of the best ways to save money is to do this.
