How Do I Get Started Saving Money?

Are you looking to increase your savings? This is a very popular question, and you may not even know where to start! These three tips will put you on the right path to begin saving money. 

1. Change Your Philosophy 

Currently what do you think of money? Do you not have enough to invest? Keep in mind, you need to save to invest and have a goal in mind. The goal will give you propose.  First, define your goals. Do you want to have a savings goal for a house, to invest in real estate, or to buy a car? Only you can first define your goal and understand it takes time to reach your goal. I would reccomend mapping out your income (if you are bi weekly) for the next 20-24 weeks to see where you expect to be in 5-6 months. This will show you an idea of how close you will be to your savings or investing goal. Once you can visualize it, you are much closer to your goals. Your attention is on your goal. Next, you want to take a serious look at where your money goes. 

2. Your Own "Cash Flow" 

"Where does my money go?" Budgets are very difficult to stick to and currently do not know where they are spending their money on a daily/monthly basis. What I would reccomend is keeping a daily journal on where you spend. This can take 5 minutes at night or in the morning. If a journal does not work for you, the app Mint.com is great! It will track your current income and expenses and show you your monthly "cash flow". This is your income minus expenses. Now since you have a money goal and know your own cash flow are you disciplined to start making the changes? 

3. Discipline 

Before you want to start saving/investing a good rule of thumb is to have 6 months salary as reserves. If you can do this, you already have built the discipline to monitor your spending habits. You want to know your money goal and know every day you should becoming closer towards reaching it! Also, since your attention is on your daily cash flow, you are conscious about spending. Now, your job is to execute daily on saving for a purpose! 

With these three tips, hopefully you can start to save money! Please comment below with some of your favorite saving strategies or stories about how you saved money and enabled yourself to purchase your first investment!