| How to Save Your Money, Part 1 |
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Maximize your ability to live within your means. This is the most crucial fundamental skill you need to strengthen your finances. Try spending without using credit cards. For just one week, leave your credit cards at home and pay cash or write checks for everything. Doing this requires a little planning, but it's not as inconvenient as you might imagine, and you might be inspired to make it a habit. As a bonus, you'll likely spend less money. Remember, it's harder for most people to part with actual cash than to sign for a credit card purchase. Don't make a budgetpay yourself first. If you look at all your expenses to decide which ones to cut back on, you might feel a sense of loss, deprivation, and want. Doing this pits your feelings and your goals against one anotherlike constantly feeling hungry when you're on a diet. Instead, pay yourself first. Set a little money aside as soon as you get paid and before you pay the bills. Money that's put away tends to stay where it's put rather than get spent before the end of the month. You know this if you've ever found a dollar in a coat pocket or dresser drawer. This can be far more effective than merely hoping you'll have some extra money left at the end of the month. Take your savings from your pocket money. One of the most effective ways to pay yourself first is to reduce the amount of money you carry around. Take a little cash out of your wallet and set it aside every time you get paid. See if you can keep from spending it until your next payday. Don't worry about whether you'll have enough money for what you need. When you reduce your pocket cashand limit your discretionary purchases to that cash your optional spending gets curbed first. |
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