How to Save

Saving is hard.  For years, we would either not save at all, or we’d save a bit, then rush to spend it.   That didn’t get us very far.  Years of pretending to save like this left us with nothing in reserve.   Finally, we’ve figured out the strategy to save money.

First and foremost, make more than you spend. This holds true at any level of income.  If you don’t make much money, then you need to not spend much, either.   Sometimes, this isn’t possible under current circumstances.  In those cases, you need to either increase your income or decrease your expenses.  Cut the luxuries and pick up a side hustle.  The wider the gap between your bottom line and your top line, the easier it is to save.

Next, make a budget and stick to it.   There is no better way to track both your income and your expenses.  I’ve discussed budgets before, so I won’t address that in detail today.  Short version:  Make a budget.  Use any software you like.  Use paper if you want.  Make it and use it.

Pay yourself first.  The first expense listed on your budget should be you.   Save first. If you can’t afford to save, you can’t afford some of the other items in your budget.   Cut the cable or take the bus, but save your money.   Without an emergency fund, your budget is just a empty dream when something unexpected comes up.   And something unexpected always comes up.

Automate that payment to yourself.    Don’t leave yourself any excuse not to make that payment.   Set up an automated transfer to another bank and forget about it.    Schedule the transfer to happen on payday, every payday.

Now comes the hard part:  Forget about the money. Don’t check your balance.   Don’t think about it in any way.   Just ignore it.   For the first month or two, this will be difficult.  After that, you’ll forget it exists for a few months and come back amazed at how much you’ve saved.

If you don’t forget about it, and you decide to dip into the account, you are undoing everything you’ve worked so hard to save.   Do yourself a favor and leave the money alone.