What makes a person who saves money different from a person who spends whatever they have? The difference doesn't lie in their budgets, their paychecks, or the cost of living in their area. It all revolves around their way of thinking about money. These three essential attitude adjustments can help anybody to spend less and start saving money.
Attitude #1: Time is Money
Usually, people approach a potential purchase by asking themselves, "Do I want this item or service?" But people who are successful savers have learned to look at purchases in an entirely different way. They know how much they make per hour, and they look at a purchase in terms of their time.
When they are contemplating a purchase, they ask themselves, "How many hours will I spend working to pay for this item? Is this item worth that amount of my time and effort?" If the answer is yes, then they purchase and feel good about it. If the answer is no, then they put the item down and walk away. A great number of impulse buys can be avoided by just realizing the monetary value of your time.
Attitude #2: Fun Doesn't Cost Anything
People who save money also know how to have fun without spending money, or at least they know how to spend less. Eating out at a $50-a-plate restaurant can be nice, but couples can have just as much fun on a date getting fast food and taking a walk in the park. Here are some other tips for spending less on entertainment:
- If you have children, arrange a babysitting exchange with other couples instead of hiring sitters.
- Check out the public library for books, magazines, and even movies. Request something if it is checked out, and the library will send notice when they get it.
- Scour the newspaper for free concerts, plays, and other events for family entertainment or date nights.
- Instead of seeing a movie on opening weekend, wait a few months to rent it on video or see it in the dollar theater.
- Set a $5 limit on gifts for birthdays and other holidays. Thoughtful and homemade gifts are more memorable than expensive store bought ones, and the $5 limit may force people to get very creative.
Thrifty people eliminate "emotional spending." Not only do they avoid shopping to feel better or fill an emotional need, they also don't spend because they feel like they "should." Fun can be free, and smart people go out of their way to find it.
Attitude #3: Don't Waste Anything
As the old saying goes, "use it up, wear it out, make do, or do without." People who are incurable money-savers believe in using the last drop of everything they have. They find uses for plastic shopping bags instead of throwing them out, they cut open the tube of toothpaste to get a few more days' use out of it, and they save paper that's still got a blank side to reuse. They also eat their leftovers and never let food go bad in the fridge.
Completely using everything is an environmentally responsible choice that reduces the amount of trash sent to the landfill, and it also makes the most sense economically. Items are bought to be used, not thrown away. Smart people get their money's worth from their purchases and squeeze the last bit of usefulness out of everything they own.
Thrifty people let these three attitudes guide them in their purchasing decisions and in the way they live. They value their time, they like to have fun on less money, and they genuinely dislike wasting anything. Saving money begins with a few simple attitude adjustments about money and lifestyle.
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