Regardless of the time in history and no matter what the current state of the economy, no matter what the current trends are, no matter what the unemployment rate is or where interest rates are, some money-saving ideas always work and stay true.
Big changes come from small steps and if you determine to put even one of these many savings secrets into place, you will see a big change in your life. The great Albert Einstein once said, “It takes a genius to see the obvious.” What he meant by that is that sometimes the simpler things in life are the most powerful ... but because they are so obvious, we tend to ignore them, and not let them work for us.
One of the most powerful money-making ideas is this: keep a daily diary of everything you spend. Go to the dollar store, buy a little book, and carry it with you wherever you go. Write down every penny – every single penny - you spend. It’s just as simple as that.
There is something incredibly powerful about writing down each of your expenditures. It makes the flow of money through your life more realistic and exacting. It shows you simply and clearly just exactly where you are spending your money, on what and why. Once you know this, it becomes much easier to control your spending. You will feel empowered with self-control and this will encourage saving.
Many people who have taken up this practice have not only learned something about themselves, which they never before understood, but they are often astounded by the simplicity of the lesson learned.
A daily expense log can help you achieve the insight and clarity you need to realize control of their finances. That’s what a simple spending record will do for you - it will give you much needed control over your spending, and thus your financial life. There may be nothing but a 75-cent notebook and a ballpoint pen between your life of financial struggle and financial freedom.
Stop deficit spending! We all know how our government has been creating debt—spending more money than our country takes in. It’s called deficit spending. Well, don’t do the same! The same rules apply to you and me. Using those nasty little plastic cards is a debt making system. Today, the average credit card holder is carrying around $8,000 in plastic debt!
Spending yourself into such debt with a credit card is certainly very easy, as many of you already know. The reason is psychological. When you give that clerk a credit card, it’s just not the same as handing over a stack of green dollar bills. Would you as readily hand over a pocketful of ten-dollar bills as toss a credit card across a counter? Probably not.
Credit cards put you in debt and keep you there. Even for people with good incomes, paying your credit card debt down to zero can be amazingly difficult. In addition, make no bones about it; credit card debt will sap your financial strength just as readily as an open vein will deplete your physical body of its very life force. Using a credit card by choice can quickly turn to use it for need. Once you get to that point, you are already in trouble and it becomes time to get some help.
There is no secret in freeing yourself from the credit card game. You must take out a pair of scissors today, cut your cards in half, and begin paying them back, slowly but surely. Be sure to always pay more than the minimum amount due, even if it is only $10 more.
Once you stop adding to the debt, even small payments will eventually, add up. You can get out of debt if you are patient and self-disciplined. Once your cards are history, you must adopt a strict pay-as-you-go policy. Instead of buying now and paying later, save now and buy when you have the full amount. This is key to being able to save.
Once again, stopping credit-oriented consuming is one of the most powerful financial tools available to anyone today. Why not pick up this tool and use it for yourself?
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