The biggest problem with budgeting (other than being incredibly boring to most people) is that people don’t do it. What most commonly happens is that as people earn more money as they progress in their careers, they simply spend more money. Basically, people spend what they earn. (Some even spend more than the earn but that’s a topic for another day…)
What if you didn’t spend what you earned? What if you saved more than you earned? What would that look like? What if instead of spending more you saved more?
Picture yourself saving and investing your money so that you have $10,000. Would you stop there? What if you kept saving and investing and you found yourself with $100,000? Would that get you to stop saving money? It probably wouldn’t, because when you start saving money and not spending all that you earn, you realize how easy it can be.
Meet Your New Friends: Early and Often
Start today. Make friends with Early – as in save today, when you’re younger, rather than when you’re older, as in next week or next month, and Often – save regularly and often. Deposit your income into your savings account and only spend a set amount each month.
I know, it’s much easier said than done. Otherwise everyone would be doing it. Just like starting an exercise routine or eating a healthier diet the trick is in getting started and doing it. Everyone knows they should. Most even have a pretty good idea of how to go about it. The problem is in the getting started.
So get started. Today.
Next time we’ll talk about some fairly simple ways to find the areas in your spending from which to create the small buckets of dollars that can be saved each month.
Go Gingham related links:
Tried and true investing strategies – a question asked by Annie!
Just balance that checkbook! You can do it!
Debt – you decide on the level you’re comfortable with
What does it mean to budget? Find out here
Frugal living is the key to saving
Frugal and green living – and where they intersect
How finances figure in frugality