General Question

Moxy's avatar

How do I break the habit of not saving money?

Asked by Moxy (182points) July 7th, 2010

I have a really annoying bad habit. I cant save money and everytime I get paid I spend it as soon as I get it. What can I do to save money NOW!! I’ve been getting loans off mum and then I have to pay her back. Please help give me some idea of how to save money.

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12 Answers

ragingloli's avatar

Instruct your bank to set up a regular bank transfer to a savings account and maybe limit access to the savings account to someone you trust, so that you have to convince him that it is really necessary when you want to withdraw money.

jazmina88's avatar

I have a saving account. Dont buy anything that is not a need.
want vs. need.
try a budget.
What are your weaknesses? shopaholic? restaurants, beer, shoes??

jrpowell's avatar

You need my envelope method. When I was in your shoes I would get paid and pay my bills and take the rest and divided it into however many days are left until I get paid again. I would put the money for each day into a envelope and open one envelope every morning. I would never open them early. If I needed new shoes I would have to save up by not spending what was in the envelope for a few days.

This way I always had some money at the end of the month.

PandoraBoxx's avatar

Before you can figure out why you can’t save, you have to figure out how you’re spending. Take a two week period and write down every single cent you spend -gas, fast food, pack of gum. Categorize your spending and see where it’s going. Some things you spend money on are fixed expenses, like car insurance or cell phone bill, others are variable expenses. Do you buy a lot of clothes? Spend money on gas because you drive friends around? Eat out a lot? Go to shows?

Once you identify where it goes, then you can control it. You have two choices—spend less so you make what you earn do more, or take a second job so you have more money coming in.

Andreas's avatar

@Moxy Don’t fall for every ad you see on TV, read in the newspaper, see online, etc. If you think you want/need something, then hold back any action for a few days and see if you still want/need it. More often than not it won’t be a real want/need just a passing fad.

Although it may not be politically correct to say this: Just don’t spend and keep your money in some sort of savings account, not in cash on you.

Also, when you do get paid, pay all your bills and buy food, etc first so that at least those necessary things are taken care of. Then you will have a better chance of staying out of financial grief.

Austinlad's avatar

I completely agree with PandoraBoxx. You can’t save money unless you know how much money you’re spending. I’ve kept a budget for many years. It’s more than a habit; it’s almost a hobby.

CMaz's avatar

Every time I use my debit card. The bank transfers x amount of dollars into savings.

You would be amazed how much accumulates, not affecting your overall spending.

betterdays's avatar

After I receive my paycheck every week, I first pay my utilities that are due. Then I make a weekly payment to any credit cards that have balances. By paying them weekly instead of monthly you will be suprised how fast they can be paid down, plus by doing this you probably will be able to avoid interest if your cards are not carrying to large of a balance. Then I figure out the balance that I have remaining from my paycheck and transfer a decent amount into my savings. The rest left over is the amount that I have to live on for the remaining week.

One way to curb spending that I found is to quit making impulse purchases. If I think that I can’t live without something, I’ll force myself to leave the store without the item. Then if I still “need” it after a week is up, then I might buy it. Most of the time though, I usually forget about having to have it. Good luck!

Neizvestnaya's avatar

I’m with anyone who suggest writing down a basic monthly of what bills you receive, how much the estimated payments are and when you get paid. If you’re able then transfer a set amount of money to your savings after depositing each check.

My own personal method is to subtract the amount of estimated bills from my paycheck and then deposit the remaining money in an even amount. I say anything less than $100.00 left is mine to stay in checking and that’s what I’ll use for brunch with friends, eating out while at work or online shopping. If I have some left over by the next paycheck then I add it to the new balance of what will get transfered.

Also, if you have any credit cards then don’t close the accts. but don’t charge on them anymore, use your debit card instead.

PandoraBoxx's avatar

The problem I’ve noticed with my daughter’s friends and money is four-fold. First, they consider eating out, drinking and cigarettes as required expenses, and will spend money on those things before they will figure in transportation costs. As a result, they are always borrowing money from their parents for gas. Add to that wanting to not seem like a jerk, they are willing to give friends without a car rides to places, even if it’s out of their way. Friends don’t think of it as costing anything. Secondly, not everyone who lives at home is required to pay the same expenses. If your parents require you to pay rent, cell phone, car insurance, then you are going to have less money for things like going out, clothes, etc. If you try to keep up with your friends who have less fixed expense, you are always going to be in debt. Thirdly, dating a high maintenance person. A coworker remarked that her son took his girlfriend out for dinner on her birthday and spent $100 because that was the place the girl chose. Coupled with a $150 birthday present, her son spent the equivalent of two weeks’ income on the girl. My friend said on her birthday, dinner for her and her husband was $50, and he bought her a $40 necklace from an art fair as a gift. Fourthly, you flat out don’t earn enough money and either need a second job or to work more hours.

Andreas's avatar

@PandoraBoxx Parents who don’t insist on their kids paying a reasonable amount into the home expenses when the kids earn money do the kids no favours. These parents should realise that their actions, while popular, are unloving to their kids because the kids will have the attitude that life is free, or at least cheap.

Parents need to set a price, or let the kids find out certain realities for themselves. This is not cruel, but kind. Never will living expenses be cheaper than living at home.

GracieT's avatar

I’ve said something about Debtors Anonymous before, but I will again. DA has taught me about needs vs wants, led me to set up a savings
account, and helped me to
make a budget. I will always
be thankful to DA for the things
it has taught me. I wasn’t so
far in debt that I needed to know how, but DA also
teaches people to work with
creditors, to create payment
schedules that satisfy creditors
and that people can afford. It
is a twelve step group, but it can change your attitude and behavior with money.

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