What does spending have to do with saving money? For many people it has everything to do with it because they save whatever is leftover at the end of the month. Saving money only happens after spending decisions have been made. For others, spending has little to do with saving because they make saving money a priority by saving money first and spending only after meeting that commitment. Now this is obviously a very simple way of looking at this and it doesn't take income levels and other factors into account. The point is that in order to save money you need to make it a top priority.
How does one make saving a priority?
- Make Short-term and long-term savings goals
- Create a plan for how you are going to get there
- Identify amount required to save each month
- Setup automatic monthly savings transfer
Several assumptions made include an appreciation for the difference between needs and wants and there is sufficient income to cover needs.
