What is the best way to disipline yourself and save money?

Answer 1

My best ways are:

Learn the difference between need and wants
Always spend less than I earn
Always remember, credit is NOT free money
Never buy cheap stuff, but always buy the best (save money in long run)
If buying the best is not possible, re-evaluate if I really need "it"

Answer 2

To buy property and have to make monthly payments on it or else they take it away and you lose it all. But to make even more, only agree to pay the interest only and put the difference between that and the principal that you would have paid and have it automatically put into a guaranteed investment. The principal, if given to the bank that gave you the loan, will not gain any value, but it certainly will if month after month it is placed into a secure investment that gains value.

Doing this forces you do make your payments under the threat of losing it all, but the threat is reduced if you have the separate side investment that would have been the principal payment, If you lose your job for awhile, you can use that savings to make your regular payments to the bank. Another plus is that a bank will bend over backwards to try and help an account holder that hasn't paid any principal to figure out a way to make payments as opposed to someone who has paid off 75 or 80 or 95 percent of their loan. Those (nearly paid off) loans are tasty pickens for a bank if a loan goes into default, but again not one that has no principal paid. Also, if you are temporarily out of work, just try to get a loan from someone so you can make your payments. The person who saved is in a much better position.

The last thing I'll mention is the fact that at this time, all loan interest is completely tax deductible, which increases the value of your payments. Your principle would not be.

Answer 3

I did this when I was just out of college and it has led me to save thousands and thousands over the years and be very disciplined up to today:

Call your bank tomorrow (or day after 4th of July!) and set up an automatic transfer of a fixed amount twice a month (or whenever you get paid) to a savings account. I was quite poor just out of school and so I started with $25 each paycheck.

You have to vow to never touch the money in the savings account unless it is an emergency or for some reason you have already determined (buy a car, downpayment for a house, to go back tyo school, etc).

The trick is to learn to live off of the money that is left in your checking account - it is actually quite easy to do because when the money is not there you don't find ways to spend it. This is why people say you have to always pay yourself first -- you do this by taking a portion of your paycheck and paying yourself (the auto-transfer to the savings account) before you start paying cel phone bill, gifts, going out, rent, etc....

You absolutely have to set this up as an automatic transfer -- this cannot work if you think you will just remember to make the transfer once or twice a month yourself.

Within just a few years I was up to transfering $1250 per paycheck (twice a month) and used that money to buy my own home and investment properties, and now those properties will start to make monehy for me!

So glad I did not spend that money on clothes, eating out, fun times -- all the typiucal things that you blow your money on when it is just sitting in your bank account with no designated purpose.

So SERIOUSLY, start immediately, call your bank and set up the automatic transfer. If you cannot take that simple first step, then you just will not be a success in life -- that's the truth.

Answer 4

I used to have the same problem...I am from India and my earnings are good according to Indian society.. I make around 2000 $ per month which is good middle class income according to Indian lifestyle... I have 4-5 bank accounts and 2-3 credit cards.. I have kept all my credit cards in my locker at home and have stopped using them.. I keep only 1 ATM card and 1 Credit card with me for emergency..... I am always tempted to use money..... so I invested in some necessary savings ...recurrent deposits, with electronic clearance from my savings account.. I don't even feel when I saved huge amount of money....The bank is far away and not easily accessible.. So I have saved a lot of money in last 3 years with this method.. and I am going to continue this thing untill I am 60 years old, I am 32 now.
There is another method..... just change your life style to a person of litle lower financial status of your present. Don't believe in show off... believe in simple thinking... celebrate events at home rather than hotels...

Answer 5

Open a savings account and have the money transferred automatically from your checking to savings once every pay check. Any good bank will provide you this service for free. Also DON'T get an ATM card for the new account so it's harder to access.
Or start a retirement account. If you take money out of an IRA then you are subject to at least a 10% penalty.

Answer 6

Remember the phrase PAY YOURSELF FIRST. This means setting up a savings plan so that an amount of your earnings gets deducted before you get it and paid into a savings account. Then let it grow and increase the amount if you can. Start to learn about investing. Then, you can start to take money from your savings account to invest.

Answer 7

Set reasonable goals.Plan ahead. Don't let your heart rule over your head about money issues. If you don't control money it will have control of you. Money is so important that it is the single most mentioned subject in the Bible. Not because God needs money he knew what a stumbling block it would be for us to over come. Good luck ! Also get in touch with a banker in your area interested in mentoring you. A good an easy to follow book on the subject is (The Bold, Beautiful, & Broke)

Answer 8

well if you want to save money put it in the bank make envelopes or folders for the bills that you have to pay.label them gas,cable,etc.every time you get payed put a portion on the bank,then put money on the envelopes so when you dont have to be stressed about them at the last minute because you bouhgt some hot new kicks.add money to the envelopes every time you get payed.dont be temted to touch that money.and after the month you might have a lil extra.

Answer 9

Stick it in a bank, don't get an ATM card, use a joint account with a parent or sibling to ensure you can't get the money out by yourself.

Answer 10

giving or handing over your financial responsibilities to a trustworthy party till such a time you have come to appreciate the value of saving money and the rewards that come with sacrafices