The One Surefire Way to Successfully Save Money

There really is only one surefire way to successfully save money. It’s so obvious, that many completely overlook its beauty and simplicity as way to save, and, ultimately, build wealth.

I’ll get to this magical saving strategy in a moment, but first a few thoughts.

Our focus here at Savings Beagle is to provide our readers with information and advice on finding deals and saving money. Much of what we provide, though, revolves around saving money on expenditures.

Meaning, to save money, you have to spend money. Which is fine, as long as the saving-without-spending part of your lifestyle has already been accomplished.

A recent conversation with my barber made me realize that this most basic of saving tactics – that is so foreign to so many – was something Savings Beagle’s never covered. And that needed rectified.

Saving Money’s Hard

 The conversation my barber and I had – that prompted this post – related to our dogs, specifically medical issues my current dog is having, and his previous dog had experienced.

It was a significant medical expense he had faced with his previous pooch that motivated him to obtain pet health insurance for his current dog.

His monthly premium for this insurance is $35. Each and every month for a significant number of years now, he’s diligently paid $35. Luckily – or unluckily if you’re looking at it strictly from a financial perspective – he’s never had to use it.

Which prompted him to say to me, “I know if I had just saved that $35 every month, I’d be in a much better position financially. But, the reality is, I know I would never do that. I’d just spend it.”

As soon as he said that, I shook my head in agreement and said, “I know exactly what you mean.”

Saving money’s hard. It takes a special person to look at a pile of money – real or digital – and not get that urge to spend…just a little…which oftentimes turns into a little more than just a little.

That’s normal. It’s somewhat abnormal to not have those feelings about money.

Especially when we’re bombarded everyday with messages about all the things we should have and all the great foods we should try and all the new experiences in which we should partake. All of which cost money.

We should buy things that make us happy, try new restaurants and foods, and, especially, dive into experiences that will bring meaning and enjoyment to life. We’re only around for a certain period of time, why live it in a limited, miserly way.

But that live-life mindset needs to be countered by, and coexist with, a financially prudent way of living.

Which means saving first and then enjoying the fruits of your labor.

The Money Saving Trick

 Which brings me to that surefire way to successfully save money.

It’s simple, really. Never let yourself see the money.

Get the money out of your reach before the opportunity to spend it arises.

The easiest way to make this happen is through automatic payroll deductions.

Most employers will allow for set amounts to be deducted from an individual’s paycheck and sent to a saving program or vehicle of his or her choice.

The most well-known savings option is the 401(k). And if you’re not already having a certain amount automatically deducted from your paycheck and invested into this retirement vehicle, go in to your HR department tomorrow and sign up! Even if it’s only $10 a paycheck, you’ll be on your way, and can build your contributions from there.

But there are plenty of other ways to automatically save, over and above an employer-sponsored 401(k).

Traditional and Roth IRAs for those without access to 401(k)s are great retirement programs into which you can send your automatically deducted contributions.

If for some reason your employer won’t allow an automatic deduction from your paycheck into a personally held IRA, or you’re self-employed, it is easy to set-up an automatic withdrawal from your bank account into the IRA.

The key is to have the auto-withdrawal scheduled for the day after your paycheck is deposited. This way, you ensure the funds are in the account, avoiding a potential overdraft situation, but the withdrawal amount’s automatically moved on before the urge to spend hits. Or at least I hope that would be the case.

And if you’re already contributing to a retirement savings vehicle, but want to direct additional dollars into a more liquid savings program – but one that’s not as tempting as your everyday bank account – then open an account at a different financial institution and have a set amount automatically deducted from your paycheck (or bank account) every month and deposited there.

The fact that this account is not your primary account may allow the adage, “out of site, out of mind,” to come into play. Yes, the money’s easily accessible, but because it’s not in the account that you use for bill paying, everyday cash withdrawals, etc., you’ll be less tempted to raid it for unnecessary expenses.

The automatic aspect is the key to any successful money saving plan.

If your goal is to save from an easily accessible source of money, it’s likely it will never happen. The temptations to do otherwise are just too great.

Which is why I say, without hesitation, saving money’s hard.

But it doesn’t have to be, if you just jump on the automatic saving bandwagon.

So take a few minutes, today, to decide on your automatic savings vehicle and get it set it up.

Not only will you feel much better having that “saving monkey” off your back, but you’ll be able to jump headlong into all the money saving advice and tactics we at Savings Beagle have to offer.

image courtesy of cooldesign at freedigitalphotos.net