by JQ Adams

Created on: March 01, 2009

Many people have a hard time saving money because there are so many things that they want to spend their money on. There are bills to pay and food to buy, clothing to replace and gas to purchase, and that doesn't even begin to get into all of the optional purchases that we are faced with every day. In the face of all of this temptation, it is no wonder that many people are having trouble saving for their future, but there is an easy way to make sure that you are saving a good amount of money each month and that is by taking away your ability to spend it.

Many people have found that the most effective way for them to save the money that they need for the future is to place the money into a savings account as soon as they get it so that they are not tempted to spend it on everyday items. As soon as the person is paid their salary or hourly wage, they take 10% of the money that they have earned and place it into an interest bearing savings account where it remains until needed for an emergency. By taking this money out of the equation before the person really has a chance to realize it is there, it is greatly reducing the risk that the person will spend the money instead of saving it.

How This Helps You

If you talk to any person in the nation, they will be able to tell you a story about how they walked into a store to purchase one thing and came out with more items than they intended to buy. Retail stores are experts in trying to trick you into spending more money than you intend to and the constant bombardment by advertising and crafty displays make it very difficult for some people to pass up items that they perceive as a bargain or as a necessary item at a good price. These people may not be able to resist the allure of a bargain, but they do have the willpower to resist spending money that they do not have, so if the money has already been taken out of the person's checking account they will not count it as extra money to spend.

What If I Don't Make Much Money?

The truth is that no one should have to spend everything that they make each month. If you are living paycheck to paycheck and all of your money is being spent before you make it, then a serious reevaluation of your life needs to occur to find out why you are not able to save at least 10% of the money that you earn. For many people, this is a case of confusing the things that they want with the things that they really need to have and spending too much for luxury items that the person can really not afford.

Some of the biggest culprits contributing to this mindset are housing costs that equal more than 30% of the person's total income and car payments for new cars that are extracting more money from the person's paycheck than they can afford to spend. Other items that are wants generally classified as needs are cable television, high priced grocery items, and weekday lunches at restaurants. By reevaluating your expenses, you may find a number of different areas where you can downgrade and the money that is saved can be placed into a savings account and used for any emergencies that arise in the future.

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