There is an easy money saving exercise that everyone should do at least once in their lives. It’s ultimately one of the best ways to save money, since it is not about pinching pennies, but about discovering what you really want and getting it. It is so easy you may hesitate to try it. Just try it. Here it is:
List everything you’ve spent money on, are currently spending money on, or might spend money on.
Don’t just read this and think of a few things. Take the time to really write it all down. Review your bank statements if you must, in order to recall and include everything.
Go through the list, and carefully look at each item. Take the most time on the large items – past, present and future possibilities. If your timeshare on the shore is worth half of what you paid, costs $1,000 per year in expenses, and is rarely used, you want to learn from that – not to punish yourself, but to have a richer life.
If you think seriously about the number of times you may use that Recreational Vehicle, and the price, it can be $250 for each day of use. That’s okay if that is worth it to you, but perhaps you really would enjoy $100 hotels more. Or maybe it is possible to rent an RV for less overall cost, thus freeing up money for other important goals.
You see, saving money isn’t about sacrifice. We all are aware of the scrooges in life that pinch their pennies, bank the savings, and then do nothing with it. The purpose should be to save money in one area of life so you can use it in a way that make your entire life richer.
Suppose you notice you’re spending $8 per month on subscriptions to magazine you do not read, or on insurance for a motorcycle you never ride? Cancel the subscriptions or market the
Motorcycle, and what are you lost? Is it a big deal? What will that $8 get you instead?
– Bank it for ten years, and use the $1200 to take another honeymoon.
– Use it to pay for a day off work once a year, to spend with the children.
– Purchase it, to have an extra $50 per month during your retirement years.
– Purchase six good books annually, to learn something new.
– Make banana splits for the family once per month.
– Give $100 annually to a worthy cause.
$8 per month can do a lot if used sensibly. Imagine what you can do if you stopped wasting $200 per month. That’s why it’s essential to discover what you really want – and what you do not want. This is one of the most intelligent ways to save cash.