It is important to save money, especially if you hope to retire one day or if you have things you’d like to purchase or vacations you’d like to take.  The reality is in order to do all of those things, such as make a big purchase, retire, or take a vacation you must have the money to do so.  Sure you could fund your vacation and your big purchase with credit, but let’s face it you can’t live on credit during your retirement. 

So, what can you do to develop a “savings mentality”, in other words to always consider how you could be saving.  In order to truly be a saver you must have a specific mindset, you will learn to put off purchases, skip certain purchases or luxuries and plan for the future.  Saving will become a habit and something that is easier and easier for you to do.

Some tools and strategies for savings include:

Paying yourself first. Always put aside a portion of your paycheck each month right when you get paid.  Open a savings account and be diligent about putting that money away each month.  You can even set up a direct deposit so that you never forget.

Set up an emergency fund. Setting up an emergency fund of at least $1000 and up to 3-6 months of expenses is a smart strategy to help you when the hard times come, and they will come.  This will help when crisis strikes and you will have the money you need for the unexpected expense.

Get rid of debt. Paying on debts can eat up the money that you could be saving.  Therefore eliminating your present debts and not building up any new debts is a smart way to go.  The more money you have to put away the better.

Photo credit: Kevin