Mindfulness & Money: How to Save Thousands and Earn Millions

Be mindful of your money. This is just a nice way of saying 'Watch your spending.' But it's a bit more than that. It's making sure that you keep track of what you are spending the most in. It's knowing when you are spending too much.

It's knowing the true value of a dollar.

A dollar is not just a dollar. It's food for that week. It's savings for emergencies. It's an investment for a future where you don't have to work through the time that should have been your retirement!If you invest one dollar at an average annual interest rate of 8% for 40 years and compounded the interest then you will earn $20.74 from just that one dollar. That is amazing! It is because of this that you should be saving as much money as you can, and as early as you can.

If you invest one dollar at an average annual interest rate of 8% for 40 years and compounded the interest then you will earn $20.74 from just that one dollar. That is amazing! It is because of this that you should be saving as much money as you can, and as early as you can.The first step to saving money

The first step to saving money is to know where it’s all going in the first place! Use these tips to help you keep track of your money and to help you save as much of that money as you can.

 

1.) Build a Budget

Tell your money where it needs to go! If you don’t control your money then your money will end up controlling you!

Make a written budget each month and it will help you greatly on the path of wealth building. I know a lot of poor people- a good chunk of America is pretty poor- and I have asked many of them if their family has a written budget that they follow. Many of those that I asked said “No”. Afterward, I asked a lot of questions about income, expenses, and more.

For those who said yes, I probed further and found out that their family finances weren’t too bad because while they didn’t have a lot of money coming in, they still had less money going out. This means that even with their low income, they managed well enough to put money aside into savings or, at the very least, not go into debt.

From my probing, I found that there were a lot of people who had decent incomes but were poor because they didn’t manage it well. In one case, this woman with two kid was making around forty thousand a year but she still couldn’t pay for enough food for that month because instead, she wanted a new T.V. or she wanted to eat out instead.

Meanwhile, a husband and wife making around thirty thousand while taking care of two kids are living in a better house, feeding their family just fine, and are putting aside money for emergencies and general savings.

That’s the difference that a budget makes. It makes living  on a little easier and more importantly it gives you control over your life.

Click here to view my complete post on Building a Budget.

 

2.) Think Before You Buy

 Often people will buy a “hot and new” item as soon as they can, and they’ll do that over and over again until they physically can’t spend any more. I’ve seen it happen so many times before and usually, they get bored of that item after just a few week. This is called impulse buying and it is one of the worst things to do if you are trying to save more money.

Impulse purchases can royally mess up any budget that you have, leaving you with less money to either save or spend on other items. Make sure you’re not overspending in any part of your budget.

The average millionaire does not impulse buy. They think about what they want and make sure they really want that item. When they do decide that they want it then they find the best deal for it. They will wait for a good deal if they have to but they will not just grab it and buy it when they first see it.

The best advice that I can give to you is to just wait a day. Wait one day and think about it before you finally make that purchase. Your savings account will thank you.

 

3.) Track Where Every Dollar is Going

This seems like it should go along with building a budget but saying where every dollar should go and actually knowing where every dollar goes are two different things.

Tracking your money means that you know where every single penny is going. You know what it was used for if it was used at all. You keep a record of it all.

This sounds a lot harder than it actually is but it is actually one of the easiest parts of being mindful about your money.

There are tons of different apps to choose from that will allow you to record your expenses but if you can’t or don’t want to use your phone then you could just write it down. All you have to do is write down what you bought and how much it cost. You can bulk some items together like groceries but big items like a computer should be separate even if you bought other items with it.

By keeping a record of your expenses, you can go back and look at where you are overspending, and make any needed changes to either your budget or your spending habits.

It can be a real eye-opener to see how much you might be spending on lunch or on coffee. If you buy your lunch every work day then you could be spending $140 each month. For coffee, that’s around $70 a month. You have no idea what kind of stuff might be eating away at your savings until you track your money!

 

4.) Always Compare Prices. Always.

 Be aware of how much you are spending on any item or service because there is always the possibility that you’re overpaying. You could be spending hundreds more without realizing it!

Do your research and figure out the best deal. This could be as simple as comparing the prices of different brands at the grocery store or it could be as complex as comparing prices between cars or even houses. It doesn’t matter what item it is; you can find a better deal somewhere else even if you got to work to get it.

Take a look at what you’ve already got. You could be overpaying on your electric bill, T.V. bill, internet bill, etc. All of these services that most people think have a fixed price can actually be changed. You can get you’re a better deal on anything!

Do you want to lower your grocery bill? Get a deal.

Do you want to buy a gift for a friend? Get a deal.

Do you want a car? Get a deal.

You are overpaying for everything! Realize that and change it even if you have to create that better deal yourself!


With every dollar you are able to save and invest, you are able to earn that $20.74 we talked about earlier. That’s for $20 dollars for every dollar invested. That’s why you have to know where all that money is going and remind yourself that you can’t buy whatever you want. Save as much as possible because what you do now will determine what you will be able to do later!

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