Saving money is hard. We know, because we've done it. Over the course of 2 years, we saved enough money to live our dream of travelling around the world. We are certainly not rich, but we actively made the choices it takes in order to make this the number 1 priority in our lives and adjusted ALL our spending to ensure we could hit our goal.
As we learned, to successfully save more money you must do 3 things:
One of the keys to taking action is to identify where you can cut expenses. Most of us identify the top 3-4 areas where we can save the most money and then assume the process is over. Not so. This is just the beginning of putting yourself on the road to being debt free or one step closer to your dream life. To really save money, you need to identify how you can care for ALL of your money.
Do you know exactly what you spent last month on food? What about entertainment? Are you spending 3 quid every day for a coffee? These small expenses can quickly eat up a lot of your savings, even though it seems so small each day. We all have the ability to justify these expenses, ("it's just a coffee and I work hard and deserve to reward myself"). Yes, I'm sure you do work hard and you certainly deserve it. The issue here is that your small outflow of cash each day is resulting in a large amount of lost savings each month.
Cutting a little each day can add up to big savings in a year. Spending £2 on coffee every day adds up to £730. Or, in terms of our trip around the world, this equals 1 week seeing the world. Do the math and understand what each of your expenses means per week/month/year. A little saving each day can really add up to big savings at the end of the year and you will be much closer to a debt free life or living your dream life.
What 3 expenses could you cut out that would put you closer to your savings goal?
About the Author: Warren escaped an 18-year career in the software industry to follow his dream of travelling around the world. He and his wife left in October 2010 and have witnessed the power of a volcanic eruption in Ecuador, been awestruck by the beauty of Antarctica, and are currently indulging in the cuisine of Thailand. Their first book, Dream Save Do, documents the step-by-step process for how they amassed the cash to live this dream life. You can also follow along with their adventures at Married with Luggage.