We all know how to save money: spend less than we earn. We all know that we should be saving more and regularly, but why do so many of us struggle to follow through? Discipline and willpower play a role, but even more powerful is providing a reason to save money. Whether it's a goal to save up for something in particular instead of buying it immediately on credit or trying to clear our debts, having a strong enough reason can mean the difference between success and failure.
Here are our top reasons for saving money and being better with our personal finances:
1) You will appreciate what you already have and focus less on acquiring more material items. Why are materialists less happy?
2) You can say no and mean it when others offer you money e.g. your parents.
3) You don't have to ask for anyone's approval or permission to use your money whether it's to pay for something or to invest it.
4) You'll learn that no one cares more about your money than you, so it really is up to you to be responsible.
5) You'll help eliminate negative money discussions with friends, family and your partner. Examining the Relationship Between Financial Issues and Divorce.
6) You'll become more conscious of how you make decisions, how you spend your time and question your actions more. Are you really doing things that make you happy in the long-term?
7) You'll realize that budgeting isn't something that just 'poor' people do. Thomas J Stanley and William D Danko, authors of The Millionaire Next Door found that for every 100 millionaires who don't budget, there are about 120 who do.
8) You'll be relieved to discover that personal finance isn't about a joyless overhaul of your spending. Instead you'll recognize what you want to spend your money on instead of mindlessly buying something just because your friends do.
9) You'll start to see yourself as your own business and will be less likely to want to risk that business going bankrupt through frivolous spending.
10) You'll stop taking your money and time for granted.
If you're looking for a way to start managing your money today, read our article on Three Small Steps You Can Take Today to Improve Your Finances.
What else have you discovered about yourself since you started saving money?