Make the Piggy Bank Your New Best Friend

The average consumer has more debt than savings and spends more than they save. You’re probably shaking your head, but that’s the average so that means more than half the people around us and possibly including ourselves spends more than we can afford. This means that these people are buying a one-way ticket to financial doom and unless they figure themselves out, they’re only getting into worse and worse situations. You have to avoid this!

Learn to Save first and Spend later!
When you have money, it can be easy to spend it. When you look at you bank balance or have a decent amount of opening in you credit card limit, it’s easy to just spend it on something that isn’t very necessary but will make you happy for now. The problem with this is you keep spending saying that you’ll save more later, leading to a very deadly cycle.

To prevent this, you have to save first and spend later. When you get a paycheck or inflow of cash, put it in your bank account first and put a predetermined portion away into another account immediately. Even better, make this process automated, like an automatic contribution plan, to make it easier for yourself to save money! It doesn’t have to be a savings account you can contribute to your employee plans like stock purchases if you company has one. You can also contribute to the purchases of a mutual fund, these are easily done at any bank and even in the down markets can help you eventually build up a decent amount of savings.

Why is Saving Money so Important?
Putting away money thinking about your future is now more important that ever. Because of the economic hardships that we are all facing, to have savings will help us psychologically. Even if the money you save it just for a rainy day fund, you will be able to have a backstop just in case something goes wrong. If you keep accumulating debt, you won’t have any defense against a sudden problem that occurs to us. And it goes without saying that we face a lot of those in our lives.

Protect yourself and make your future a lot brighter by saving money and having a plan. It’s a great feeling to know that your savings continue to grow and that you might be giving your chance to retire early and spend your time doing things that will make you happy. Think about that for a moment.

Mo2 Thinks
Being normal in a lot of cases if just plain wrong and this is a perfect example. You do not want to be accumulating debt just because you don’t have control of your spending habits. It takes time, but if you watch what you buy and limit it you can make it much easier on yourself both financially and mentally.

You have to put things in perspective. Just because your neighbor or colleague both a plasma television, doesn’t magically mean you need one too. Maybe that person had saved for it or maybe they just put themselves into a deeper whole.

Take control of your finances and save first and spend later. This way you won’t miss the money you don’t see and you will be a lot more careful about spending the money that you actually do get your hands on. Good luck, it’s a tough process but I promise you that it will be a rewarding one in the long run.