How to find powerful ways to beat the recession while saving money?

PART 1

In today’s economy, everyone is looking for different ways to save money for various reasons. Raising children, buying a house, buying a car, paying the bills is getting harder and harder to accomplish for most people. Most people can’t do the things they ENJOY because there isn’t enough money to cover it all. Most of us can’t take our family on vacations, have family nights out, or even afford to do the “little things” for ourselves. These techniques will not make you rich! However, if you use some or all of them, at the end of the year you will see significant savings.
Let’s start saving money TODAY!

Getting ready to save

1. Budget
Everyone must create a budget. Even if you’re not good with money or don’t know where to start with a budget, many companies, like H&R Block, offer free financial consulting to help you put together a budget. Knowing where you are spending your money is by far the best way to save. In most cases, people have no idea where their money is actually going and once they see it on paper, they are not only shocked but also decide to change their spending habits.

2. What matters to you
Take a sheet of paper and a pen. Make a list of the 10 most important things in your life. Next to each one, rank them in order of importance using the numbers 1 to 10. The purpose of this exercise is to help you see what you consider to be more and less important. This will give you a picture of why you need to save. Some examples of things a person might include on their list are buying a new house or car, a big vacation, starting a business, or paying down debt.

3. You MUST set goals
Divide your goals into short term, medium term and long term. Being able to see your achievements is a great motivator for you to work hard to save. If you set a short-term goal to save for a bigger TV for your family room and reach that goal, you’ll be encouraged to keep saving for medium- and long-term goals.

4. Be realistic
When it comes to saving money, make sure the goals you set for yourself are realistic. If you set your goals too high and never reach them, you will become discouraged. If you make $50,000 a year, saving $20,000 would be nice, but it’s highly unrealistic. Make your goals attainable or you’ll never save.

5. Flexibility
Once you’ve set your savings goal, keep in mind that things can and will change. The secret is learning ways to be flexible. If you normally save $150 a month, when something unexpected happens, you may only be able to save $50 that month. This is fine as long as you focus on getting back to normal. When faced with having to change your goals, make sure you get back on track right away. It’s so easy to slip back into those clothes if you don’t save money.

6. Have a plan
Planning is a great way to save. Before you go to the supermarket, make a list and stick to it. It was very difficult for me to do this. Especially when you go to places like Walmart. If you’re considering a vacation, plan everything. Taking a vacation without a fixed address will no doubt lead you to spend impulsively.

7. Patience
Be patient when saving. This means that you must accept that it will take time to save and good planning. Be patient and remember that just because you want something, don’t rush into a purchase just to satisfy your urge. Instead, wait for sales to get the best price, which in turn will save you money.

8. Subsidy
Don’t forget to give yourself an allowance for things you enjoy. Even if you’re on a tight budget, buy something you enjoy, which could be as simple as buying a new shirt or having lunch at your favorite cafe. If you don’t indulge in this little “splurge,” you could find yourself in the same position as if you were on a diet. Total deprivation leads to overindulgence.

9. Tear up old clothes
Take the time to learn the various things that “trigger” your spending. When you’re depressed, lonely, sad, anxious, excited, whatever it is, do you spend more? Once you can identify these triggers, you can learn to control them. As an example, if you’ve just been laid off from your job, even though money is tight, you may have an overwhelming “need” to spend money. Maybe you notice that when you’re bored, you head to the shops. Knowing what’s bothering you will help you discipline yourself to find other forms of comfort.

10. Do not give up the good things
A misconception is that when trying to save money you have to deal with inferior merchandise, which is not true. If you love fresh breads and pastries, visit a thrift store bakery. For your fresh fruits and vegetables, visit your local farmers market. Try eBay or other auction sites to buy high-quality products at a deep discount. Keep an eye on neighborhood garage sales or home sales and auctions to find the items you need. Just because you’re looking for bargains as a way to save money doesn’t mean you have to skimp on quality.

11. Wants vs. Needs
Make sure that what you want to spend your money on is a “need” and not a “want.” Sometimes this can seem like a very fine gray line, but if you stick to the list of necessities, you’ll spend much less.

12. Written plan
When a person starts a business, they create a business plan, which becomes the blueprint for their business. The same should apply if he is trying to save money. Create a master plan that the whole family can participate in and learn their role. When you start spending too much, go back and look at your plan to see where you’re going wrong and how you can fix it.

13. Attitude
Good money management is an acquired skill. As you go through the process of saving money, you need to have a good, positive attitude, which is often what will keep you and your family moving in the right direction. If you think you can’t save, then you probably won’t. Be determined and stay positive about saving.

14. Organization
You may be wondering what being organized has to do with saving money, but it actually has a lot to do with it. For example, if you miss a credit card expiration date by one day, you will be charged a 15% to 25% penalty. The same would happen with taxes. Missing a single date can cost thousands. You need to get organized so you know the exact due dates of your bills and keep all receipts, contracts, etc. orderly manner.

15. Coordinate efforts
If you’re married, make sure you and your spouse are working on the same schedule. If one is trying to save money while the other is busy spending, what’s the point? When you work as a team, you can encourage each other to keep up with your savings.

16. Satisfaction with life
Learn to enjoy life and nature instead of possessions. The next time you feel like spending money, head to your local park where you can enjoy the warm sun, green grass and towering trees without spending a dime. Being happy in life is much better than buying item after item. Having inner peace is better than having a house full of “stuff.” That doesn’t mean you can’t enjoy some of the best things in life, it just means learning to be happy with yourself and not with “stuff.”

17. Live within your means
The fastest way to get into debt is to live beyond your means. Sure, most people want more than they have, but life isn’t all about spending money. Be grateful for what you have and learn to enjoy the financial position you are in. This is where your budget will help identify the amount of money coming in versus the amount of debt going out.