Financial Education, For Beginners

Saving Money To Have Investment Capital Through The Development Of Saving Habits

Too many complain about the fact that they want to invest but they do not have an investment capital. This is usually a complaint that appears when dealing with small companies or with individuals that want to make some sort of smaller investment. If that is your case, it is hard truth time:

You already have the money that you need but you simply spend it on something that you do not need!

It is difficult to control your finances. After all, we all love that meal at a fast food joint when we do not want to cook. I am sure you get the idea.

Most people look for tips on how to save money. This is beneficial but if you do not have money saving habits developed, you will not actually be able to save cash. Let’s say that you quit smoking. You should have money that adds up every week but when the month ends, no dollar is to be found in your pockets. This is because you do not have the right mentality to actually save money.

Set Your Goals

what is your goal

  • How much money do you need?
  • What do you want to invest in?

Having a goal will basically offer you a reason to really want to save money. You may want many things at the same time. In this case, arrange your goals in order of importance so that you can choose what is really important for you at the moment. After one goal is achieved, you can move on to the next.

Since you have goals, make sure that you also set a deadline for the goal. That can help out so much more than you may believe at first glance. Write it down and put it where you will see it every day.

Track Your Expenses

track expenses

This is one saving habit that many say they have but the truth is different. You surely know the amount that you spend in theory but when you actually calculate, you may end up seeing something different. Make sure that you track expenses on a monthly basis and that you develop the habit of doing this every single month. When you get used to this, you will start to control expenses, allowing you to instantly figure out what you can eliminate in order to get more cash available for the next investments.

Get used to analyzing costs so that you can find saving opportunities. Try to remove costs and reduce them whenever possible. Establishing a monthly budget can help out a lot.

Save A Percentage Of Your Income


The more you earn, the more you can save.

Use this statement and basically choose a fixed percentage of the income that would be saved every single month. Let’s say that you set 20%, which is realistic. If you believe that this is too much, go for 10% but do not go longer. Put that money in the bank or in really safe, low profit investments that can increase that amount. Do this for 6 months and you will end up with an interesting amount of money that can be used for a larger investment.

In the event that you cannot set up a percentage to save, it basically means that you live month-to-month and that you should look at some ways to remove expenses that you do not actually need. You spend too much and you need to reduce expenses. Focus on that.

Time To Wake Up!

wake up

In the event that you have money that remains at the end of the month, simply save it. Too many just spend everything. This is a huge mistake.

You need to understand why you make purchases. Answer these questions:

  • Do you buy something to impress someone?
  • Do you buy something in order to feel that you are a part of a group?
  • Do you buy something in order to make it seem that you are in a better situation than you are at the moment?

If you answer yes to any of the questions, you are making a huge mistake. Every single time that you buy something, you have to ask yourself why you do that.

For instance, although it may seem weird or a little unrelated, I found myself once buying a membership to a game every single month (WOW – of course) just to be a part of a group of people that were playing the game. I stopped playing and managed to save that money. Guess what: this did not affect my social life.


Stop focusing on how to save money. This is the easy part. Start looking towards a focus on developing money saving habits. As you develop them, you can use them in your business in order to get even more cash available. You have to practice but if you do get those habits nailed down, you will quickly notice that everything is simpler.

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