Changing Money Habits

Saving money is tough for most of us. Saving requires planning and a willingness to put up with some inconvenience and do a little work. For most people, saving is just too much trouble. But it doesn’t have to be. There are a few simple things you can do to change your outlook on saving money.

If you have frugal friends, try to shadow them for a while and pick their brains. Where do they shop? How do they live?

Repair things that break or try to make do without it rather than replacing it immediately. Buy clothing at yard sales and thrift stores, at least for a season. Find creative ways to entertain yourself  like playing cards instead of going to the movies, or cooking with the family rather than eating out.

Most people hate the thought of that sort of lifestyle and for good reason. It seems boring. It seems harder than it needs to be.

Every time you do something like this you should reward yourself by taking the money would would have spent and stashing it away. If your checking account is a bottomless pit, try to take some cash and put it away in your room.

For instance, if you normally purchase coffee during the work week, say five times a week, switch to home brewing and then calculate your savings. Let’s say you used to spend $100 a month on lattes,  and you’re now spending about $15 on home brew, be sure you pay yourself that $85. If you need jeans but get them at a yard sale for $2 instead of a department store for $100, put $98 aside.

At some point, you’ll need to transfer your wad of cash to a more reasonable holding area. Open a special bank account or, better yet, put it in a stock or mutual fund.

If you have debt, take your savings and dump it periodically into your checking account and write a check to pay down your debt. Imagine if you could live more or less at the same level and pay down your debt.

Frugality is one of those deceptive things that seems like it shouldn’t be fun (but actually is). Many Americans are faced with budgeting because they have no other choice. But for some, the decision to save is about personal choice and a desire to be free of debt and build up savings for the future. You should view frugality as an expression of your own creativity.

Other creative ways to simplify your life and save money include:

- Rent movies instead of going to the show

- Read books and magazines at the library instead of buying them

- Learn to sew, so you can repair your own garments and learn how to make adjustments to get other stuff to fit just right.

- Learn to buy in bulk and cook from scratch. If you can afford it, invest in a freezer. It’s cheapest to buy staples, cook in large batches, and freeze. It’s healthier, too.

Savings is a mindset. When you change your mind about your money, you can change your financial future.