Before you start putting together a plan on saving money there a few things you should think about first. Keep in mind, when you attempt to do something challenging, it’s important to get the proper education on the subject and also know your “why” or your motivation for wanting to do it in the first place. If saving money were easy, everyone would do it! The strategy is not what makes it so tough, it’s the discipline and mindset required to be able to save that make it so difficult.

In order to save money, you first have to know the true purpose of saving money. You don’t just “save to save” or just “save for a rainy day”. Sure, it is a good idea to have an emergency fund set aside to protect you if an unforeseen event were to occur. But, the true reason is that you want to SAVE TO INVEST! Most people use income from their jobs to pay for their wants like going on vacation, eating at expensive restaurants, buying luxury cars, jewelry, designer handbags, boats, and all kinds of other toys. But this is NOT what people do who truly win with money and create wealth for their family. Your income from your job should be used to cover your basic needs and the rest you should save to invest. You then want to invest in things that create passive income and THAT is the money you can use to buy your wants! 

The last thing you need to keep in mind before you work on your specific plan is that it will take discipline in order to do this. If you have a spending problem then it will be really hard to save money. We have found that a way you can overcome this hurdle is to create your savings goals around things that benefit others. If our goals all center around our own needs then we will be more likely to settle for less when things get tough. But if you are saving for your kids’ future, to help your church, or help those in need then you will be more likely to stay focused.

 

Click below to view each step

  1. Set goals
  2. Create a budget
  3. Add income
  4. Cut expenses
  5. Get out of debt