In order to grow real wealth, the secret is to spend less and save more. Well, I really shouldn’t call it a secret at all, it’s quite obvious advice. But yet why do so many Americans have trouble doing it? Instead they live above their means, battle credit card debt, and life spins out of control when the car breaks down or the washing machine stops washing. I think many folks just don’t know where to start or how to create a different lifestyle. It is with that in mind that I present these 3 very straight forward ways to start changing your financial life.
1 – Change Your Goals – If your goal is to just make rent this month, change it to make rent and have $100 left over to add to your savings account, or to use towards credit card debt. How do you do that? Well, try bringing your lunch to work all month, or brew your own coffee from now on and avoid the $4 cups from Starbucks, or reduce your cable package to the basic channels. Or get rid of cable altogether and watch TV on Hulu.com from now on. If you start looking for ways to reduce costs you will be amazed at how much more money you will have at the end of every month.
2 – Make Savings Automatic – Many banks offer a ‘Keep the Change’ program that helps you save money and you don’t even know it. Example: You buy groceries and use your debit card and your total is $22.25, the bank rounds up your total to $23 and puts the extra 75 cents in your savings account. Pretty cool service. My wife and I have added over $500 to our savings account the past few years and we didn’t feel the pinch at all. Also, make sure to automatically put part of your paycheck into either a 401k or savings account. Start with what you can afford. With time and compounded interest on your side, you will be amazed at how fast it adds up. Just start!
3 – Avoid Impulse Spending – If cash in your pocket is cash down the toilet, then stop carrying large amounts of cash. Keep $20 bucks in your pocket and that’s it. This can help avoid the impulse buying that gets many of us in trouble. I always suggest using the 10 minute rule on most medium to large type purchases. If you find something you just can’t live without, wait 10 minutes and then ask yourself again if you need it. Typically the impulse spending endorphins have worn off and you won’t make the purchase.
I will also go ahead and throw in number 4. If you are making a purchase on something you need, always do your homework and look for the best deal or coupon available. The Internet is an amazing tool for price comparisons and easy to find coupon codes. You have no excuse to ever pay full price when shopping online. It is with this in mind that I offer some of the best online coupons that have been collected on my website the past week.
Celebrate Express.com
Save 15% off your $65+ online order
Coupon Code: birthday11
Expiration: 7/31/11
See All: Celebrate Express Coupons
Lands End.com
Get $10 off your $50+ order + Free Delivery
Coupon Code: CLASSROOM & PIN 8416
Expiration: 8/15/11
See All: Lands End Coupons
Sierra Trading Post.com
Save 20% Off your online purchase
Coupon Code: ALVJULY1
Expiration: 7/20/11
See All: Sierra Trading Coupons
Sports Authority.com
Save $15 Off your $100+ online purchase
Coupon Code: JULY11TSA
Expiration: 7/31/11
See All: Sports Authority Coupons
Crocs.com
Save $20 off your $100+ online purchase
Coupon Code: SAVEJULY
Expiration: 7/31/11
See All: Crocs Coupons
eBags.com
Save 20% off your order + Free Shipping thru this Link
Coupon Code: None Needed
Expiration: 7/31/11
See All: eBags Coupons
Oneida.com
Save 10% Off your entire online purchase
Coupon Code: TTE10
Expiration: 7/31/11
See All: Oneida Coupons
Sears.com
Back to School Coupon, Save 15% Off your Apparel and Shoes purchase
Coupon Code: SEARSJULY15
Expiration: 7/31/11
See All: Sears Coupons
About The Author: Kyle James owns and operate a website called Rather-Be-Shopping.com which specializes in online coupons for over 700 stores, organized in 25 shopping categories. He also has a blog, where he writes about frugal living tips, creative ways to save money, and other musings about the adventures and mis-adventures of raising 3 active kids.
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I was an impulse spender so this last year my husband and I started doing the $20 cash in our wallets every pay day (twice a month). The rest gets divided into our personal savings account, retirement and checking account and bills are paid electronically through there. We have been able to put hundreds of dollars a month into savings and paying down bills. This really does work and you don’t feel the pinch because if you hadn’t thought about it sooner you probably didn’t need the purchase.