A Personal Finance Guide

The Best Way to Save Money

Want to know the best way to save money? Let’s start by looking at the $100 you saved by cutting back on that certain expense last month actually go? Even though you might have saved $100 on groceries, for example, doesn’t mean you have $100 more in your bank account every month. The money you saved, usually just vanished.

If you really want to know the best way to save money, you need to take one extra step beyond just budgeting. You need to withdraw that money from your checking account, today.

For example, you did some major cost cutting last month and managed to save $125 on eating out. You’re trying to save for an awesome vacation with some friends of yours, so you decide not to eat out at all this month. This one decision, should save you about $100 over the month.

Now don’t forget the next step. It’s the most important of all. Today, you need to save that money. You need to stash that cash away, in a separate account. An account that is earmarked for your vacation.

Why wait 30 days to save the $100. If you have the money now, decide to pay yourself first today. Don’t pay your bills then see what’s left over.

I’m telling you, that by waiting till the end of the month to save that $100 towards your dream vacation, that money won’t be there.

The Best Way to Save Money

If you’re looking for the best way to save, look no farther then paying yourself first. Never wait till the end of the month to pay your goals.

Start setting goals and start paying those goals at the beginning of the month.

RJ Weiss purpose in life is to educate all of Gen Y on the basics of personal financial planning. He currently maintains the blog Gen Y Wealth, where can find articles such as his ING Direct Review.