Having the discipline to save money is foundational to building wealth. Your wealth-building journey is accelerated by increasing the gap between what you earn versus what you spend. If your income and expenses break even every month, or your expenses exceed what you are bringing in, you cannot start your journey.

Living on less than what you earn sounds boring and cliche, but it is a tried and true principle. Spending less than you earn is fundamental to increasing your net worth and having the flexibility to participate in investment opportunities.

Many people want to know how to invest but are not interested in saving. This is out of order. It’s like trying to speed race with no gas.

Before you invest, you must learn how to save.

Savings gives you the breathing to focus on investment opportunities without worrying about how to maintain your current lifestyle.

Studies show that 78% of Americans are living paycheck to paycheck. There are several reasons ranging from low wages to uncontrolled spending. But the only way out of this situation is to increase the gap between income and expenses.

This is done by increasing your income, decreasing your expenses, or both. Check out this article on great tactics to save more.

This article will highlight more tips to increase your savings and identify behaviors needed to help you save more.

Saving Money Is Psychological

Have you ever seen money in your account and felt the urge to spend it, not because you needed something but because the money was there? Do you believe that money is for spending? You say to yourself, why should I save this $25? What is that going to do? Then you spend it.

Everyone who can attest to this raise your hand.

I know I am not the only one.

This is psychological. We have been programmed to consume. Society does not even try to hide it. They even call us Consumers. So the natural inclination is to consume and spend more money; not save and build wealth.

But if you desire to build wealth, you must value having money in your bank account. This means that you must save intentionally and consistently, resist the urge to follow the crowd, and keep your eyes focused on your goal.

It may not be easy at first because it will require work and discipline, but it’s necessary.

You Have The Money To Save

More times than not you spend money that you could have been saving. I read this funny meme before stating,

You would have had the money to invest, but you ate it.

Now, this is not to say that you cannot eat out, but it speaks to priorities. If you are not saving anything, but consistently eating out when there are cheaper alternatives, then you value eating out more than saving money. You can change the word ‘ate it’ to ‘wore it’, ‘rode in it’ or whatever. Whether your priorities are good or bad is relative to your goals.

Money is neutral and will follow what you direct it to do. If that is the case, then the money isn’t the issue, it’s your priorities and actions.

So before discussing the different tactics, the first step is to be honest with yourself on what your priorities are. Do you really want to build wealth? Do you want to steward your finances well?

Everyone should be building wealth, but it is not up to me. It is your decision. Everyone is at different points along their journey so you must understand what you value and then take action.

Create a Savings Goal

If you want to save money you must have a target and a strong reason. If you are saving for no specific reason, any reason to not save will do. Having a strong why gives your money a purpose greater than what the next advertisement will try to sell.

Get clear on why you need to save this amount.

• Is this money to increase your cash reserve so that you can invest more?
• Is it to save for a downpayment on a house?
• Is it a part of your fund to leave your job and pursue the business you always wanted?

Whatever your reason, make it personal and make it strong.

Remember saving is the foundation to building your wealth.

Once you establish your goal, think about ways you can achieve it.  You can choose to increase your income through side hustles or decrease your unnecessary expenses.

Identify and Replace Your Spending Triggers

Spending triggers are the activities or feelings that you experience right before you spend impulsively. These triggers can occur at any moment. That is why you must evaluate your behavior.

For example, when I lived in Korea, one of my triggers would be on the weekend when I felt alone and lonely, I would shop online to give me something to look forward to. I would have boxes delivered almost every day. It was not until I was deep in debt that I realized that I was trying to fill a void that could never be fulfilled by stuff.

Once I was able to identify the spending trigger, I recognized the lie and replaced that belief with a healthier one. For example, I realized that money does not equal fulfillment or happiness.

Your spending trigger may be different. It could be walking through the mall when you are bored. It could be when you see a sales email from your favorite store. It may be because you had a bad day and you want to treat yourself.

Whatever you trigger is, recognize it and immediately replace it with another thought. Another great option is to have an accountability partner. When you are feeling triggered, call your accountability partner to help you shift your focus and encourage you to stay the course.

Unsubscribe From Sales Emails & Apps

Having access to your inbox or cell phone through text messages is a privilege. And Marketers tend to abuse that privilege. They send way too many emails.

Do you know why they send so many emails? It is because they know that the more emails they send, the greater chance they have of grabbing your attention. Once they have your attention, they can entice you to purchase.

If you are struggling to save and easily enticed by the next sale, then unsubscribe from the email list. Release the guilt of FOMO (Fear of Missing Out) because you aren’t missing anything.

When you remove the clutter of email marketing, you regain focus and intention by staying on track with your goals. If you miss the sale, trust there will be another one soon.

While you are at it, delete the shopping apps from your phone as well. The companies do not need to have access to your text messages nor does shopping need to be that accessible.

Freeze your credit cards

An easy way to reduce your spending and increase your savings is to stop using credit cards. Credit cards are an easy way to overindulge. Studies have shown that people tend to spend more on credit cards than they would with cash.

We must remember that

Credit cards are not your money.

And the companies want their money back with interest.

One way to reduce your spending is to freeze your credit card.  Some people think of freezing your credit cards as putting them in the freezer and you have to thaw them out to use them. That is a method, but that is not the freezing I am referring to.

Freezing your credit restricts new transactions on your account. This will require you to use your money to make purchases. Freezing your credit is easy. You can either call the credit card company and request it or you can enable the feature under your account settings.

If you think that you will remove the freeze when you want to spend again, then another option would be to cut them up or lock them up in a secure location and give the key to your accountability partner.

This may sound extreme, but if your spending is out of control, then it’s time to take drastic measures.

Find local free things to do in your community

Most of the time people use shopping as something to do. Like baseball, it has become a favorite pastime. “Window shopping” easily becomes trying it on to eventually taking it home.

Instead of spending money you can volunteer, spend time with a friend, learn a new language, go for a walk in the park, or go to a museum. The list is endless. You can also make it a challenge.

Another belief is that you must go on a vacation to have fun.  Yes, a change of scenery is good and necessary sometimes.  But you can also have fun in your community.  Challenge yourself to find fun things to do in your community or surrounding community.

One challenge that I have for myself is to visit all the museums in Washington DC. Most of the museums are free and a great way to spend the afternoon at little to no cost.

Use What You Already Have At Home

Another good way to save more money is to use what you already have at home. Because we have been conditioned to consume, then it is not surprising that you have two and three of the same item.

There may be some items that you purchased because you forgot you already had it. It’s time to take inventory of things you have and use them.

Wear the clothes that you have. You may even have new clothes in your closet that you have not worn yet. Wear the shoes you have. Read the books on your shelf. Eat the food in your refrigerator.

Make it a point to use the things you already own before buying something else. You will be surprised at how much money you can save.

Advertisers will always present a new bright shiny object to grab our attention.  Maintain your focus and commit to using what you already have.

And if you are not using it, give it to someone who needs it.

Conclusion

Saving money is a skill that everyone needs to learn and master. Since most were not taught to be savers and build wealth, you must decide if you are going to do what the majority of people will not. You must save first to have the capital to invest later.

Remember you are going against what society has conditioned you to do so be prepared to resist the urge to shop impulsively. Your future wealth and your legacy depend on it.

Save more. Invest more. Build Wealth.

That’s getting your Finances On Point.