How To Develop A Saver’s Mindset

How To Develop A Saver's Mindset

Do you have dreams of what you’d like to do with your future savings? Have you thought of getting a new car or maybe getting a new home? Has the thought of traveling to Europe crossed your mind? How about lounging on a beach somewhere while sipping a margarita? If you answered ‘Yes’ to any of the above, welcome to the club.

All of us have dreams of saving up and enjoying the benefits that extra money brings. Sadly, not all of us have the discipline hold off on spending now in the hopes that we’ll enjoy our savings in the future. Alternatively, many of us let our expenses eat up all our income and there’s nothing left to save. Regardless of which camp you fall under, there is good news: the ability to save is all in your mind. The truth is if you find the willpower to save, you will be able to do it. Follow these steps to start developing a saver’s mentality.

Step 1: Admit The Way You Handle Your Money Is Wrong

If you always find yourself always short of cash at the end of the month, stop and realize that how you’re handling your personal finances is wrong. Why it is wrong? Instead of enjoying your money, you are worrying over it. Instead of money being your tool, you have become an emotional slave to it.

The first step to recovering from this mental downward cycle is to stop and say to yourself that you are wrong. I know it hurts. I know it takes quite a bit of effort. But you will not be able to make progress in how you handle your money if you don’t admit that you are wrong and have failed to handle it properly. Admit your failure. Fully realize it. Think it through. But don’t dwell on it or wallow in self-pity. Don’t cross the line from admitting failure to self-defeating self-pity.

Step 2: Resolve to Take Responsibility For Your Actions

Now that you have admitted to yourself that you’ve been handling your money the wrong way, you have to sit down and write out or think through what you’re going to do about it. The most obvious step, of course, is to take responsibility for your actions. You have to verbalize this resolution: ‘I am responsible for myself. I choose what happens in my life. I will take control of my finances from now on There is nobody else to blame except myself.’ This is a very empowering statement. Repeat it over and over again until it sinks in. Don’t just focus on what it obviously means but also think through what it implies.

One key implication you have to truly dwell on is the fact that if you give yourself excuses and give yourself permission to blame others for failures in your life, you are handing over the keys of your life’s engine to someone else. By blaming others you are effectively giving up control of key parts of your life. Retake that power by refusing to blame others. This is the only way to stay in control.

Step 3: Identify Your Problems with Handling Money

Different people have different weaknesses with money. While some people have problems with impulse buying, others can’t resist dining out. While some people think every investment ‘opportunity’ is something to throw money at, others can’t seem to reduce their expenses when their incomes dip. The truth is that our problem with money is as varied as our personalities. Identify what your problem with money is. Break it down-is it a question of impulses or do you just have a tough time prioritizing?

Step 4: Fix the problem one small piece at a time

Just as Rome wasn’t built in a day, your financial problems won’t be solved in a day. Now that you have identified your issues with money, resolve it one piece at a time. If you have zero savings, resolve to start saving $50 a month. Once you reach that, add another small piece by resolving to save $100 a month. Keep ramping it up and keep honing the ways you are able to save money. Focus on your monthly savings achievement. Keep your eyes on the prize and it will be harder for you to lose focus and backslide.

The Bottom Line

Effective savers have a determined and focused mindset. They were not born this way-saving is a learned skill. Follow the steps above to get the correct mindset regarding your money. You worked hard for it-make it last longer by saving it and enjoying it at the right time.

Saving money is also about spending it wisely. If you’ve been looking for new cars like these to purchase for your family, it’s a great idea to shop around. Visit as many dealerships as you can to find the best new car deals in your area.

About Edwin

Edwin is a marketer, social media influencer and head writer here at Save The Bills. He manages a large network of high quality finance blogs and social media accounts. You can connect with him via email here.

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One Comment on “How To Develop A Saver’s Mindset”

  1. I will take the actions you are recommending and try to pass them on to the people I know with spending money. I personally don’t feel like I have spending issues but there is always room for improvement. To the people I know with financial issues I recommend to use title loans to get out of debt if that’s their case.

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