Monday, August 31, 2009

The Easiest Way to START Saving Money

When I was looking through all of the information available online about saving money I realized something. Almost all of them focus on saving money in the long term, with extra emphasis on how to start changing your spending habits immediately. The thing is, I know that's easier said than done. It can be hard to get used to saving money when it burns a hole in your pocket. That's why I wanted to share with you my best advice about the easiest way to start saving money.

Here's what you're going to need:

1) A box of sandwich bags (preferably Ziploc-it's just easier that way)
2) A big coffee can
3) A permanent marker

It's easier to save money when you have a specific goal in mind, so what I want you to do is choose three short term goals that you want to save money to achieve. These should be important to you, but short term enough that you're going to be able to reap the rewards in the near future.

Now, take three sandwich bags and write your goal on the outside, as well as how much money you need to save to accomplish that. Then, every week, I want you to put a dollar in each of those bags. You can always put more than a dollar if you have the money, but you should always add at least a dollar. These bags ARE NOT for spending cash, so don't get overly zealous. A dollar a week is better than tossing in ten, then cleaning out the entire thing the next time you have to buy dinner.

After you've achieved those goals, bump the amount of money you're saving a week up to five dollars per goal and choose three new goals. Then go for ten. Then fifteen. Then twenty. Before long you'll be up to making regular installments on your long term dreams, and you'll barely even notice it's happening.

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