Let’s face it, if we could grow money trees we’d all be rich. Since this is a fantasy, you need to learn how your hard earned money can work for you. This requires not resting on your laurels and hoping for the best. You’re going to need to decide on what you want your financial future to look like.
Start with small and not so intrusive lifestyles changes. If you already live on a budget, try tightening it up a bit more. Ask yourself, “Where can I cut corners that wont make me feel hemmed in and like I’m missing out on life?” Try reevaluating your needs versus your wants. It’s “OKAY” to have wants and even act on them once in a blue moon, but honestly think if going out to eat, to a movie, or out to drink is necessary to your life. If you feel not, then sock away the money you’d spend on wants and focus on the needs.
Instead of filling your home with unnecessary items, invest in a few practical and useful pieces. Even if you choose to buy “Necessary” things which are expensive like furniture and appliances, quality is important. It isn’t going to be feasible or conducive to making your money work for you, if you keep needing to replace things to save a dollar or two. You can have quality pieces as long as it has a function and it’s a need, not a want.
Be selective and shop several stores before buying expensive pieces though. Sales shopping is going to help you come across what you need, for a fraction of the cost. Remember don’t over buy just because it’s on sale. Always shop within your means. All money saved by this way of shopping invest in a sure thing. Put it in a CD which can be rolled over yearly and earns interest, or start a savings nest egg. Don’t rely on the economy getting better! Plan on it getting worse, this way you’ll be well ahead of the pack, if things do indeed take a turn for the worst.
We’ve talked about a budget, but do you keep one? If you want to make the most of your money, BUDGET! You’d be surprised what you spend in a month on nothing really. Try this experiment. Keep track of where your moneys goes for two weeks. You’ll be shocked to find out how much of it you waste.
Here’s one which might be hard to do, but you CAN do it if you are determined to start building yourself a nest egg. Get yourself out of debt. Pay off those little debts first. One by one wheedle them down to nothing. Cut up your high paying interest credit cards and use cash to make purchases. Don’t create new debt either, if you can’t pay for it with cash, you don’t need it.
With a little bit of time and determination you can be on your way to creating for yourself some financial freedom. Being a frugal and savvy money saver is going to pay off in the future. Learning to let needs out way the wants is the first place to start. Remember you control your financial state of being, so invest your money in ways that will work for you.