Frugality Magazine - Frugal Living Tips for Financial Freedom

The Single Most Important Tip For Saving Money

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Busy saving money? If so while there are all sorts of tips for spending less and living on a budget, they all pale into comparison to this one single money saving tip. Find out what it is by clicking through now!Look around you and there are money saving tips everywhere.

I’ve published more than a few of them myself – but today I want to talk about the one single tip that has saved me more money over the last few years than everything else added together.

What is it?

Quite simply it’s changing your perspective on money so that building up your savings means more to you than buying “stuff” to fill your already over-flowing house.

Look at it this way…

Some years ago I lived with a friend that was a real “foodie”.

They spent half their life watching Nigella, The Great British Bakeoff and other sources of “food porn”.

The rest of the time they spent reading recipe books and trying out new ideas in the kitchen.

Oh, and eating. Lots and lots of eating.

Here’s the problem though… they hated being overweight.

Every few months they’d step on the scales, have a fit about how much weight they’d put on and then go on a “diet”. And I use the term loosely.

The problem was that as a foodie, the things he stuffed into his mouth brought him more pleasure than anything else. When he went on a diet, he eliminated his biggest source of pleasure.

Saving money isn't as hard as many people make out. You don't need to worry about making your own dish soap, or never washing your clothes. Start off with this one single tip, which has been responsible for saving me more money than all the other advice added together. Click here to learn more...This created a problem.

Within a matter of days things would start to fall apart.
He would change rapidly from a 100% healthy diet to a semi-healthy diet. A bit of cream would creep in here.

A bit of bread there. Some pasta “as a treat”. A “small” bowl of ice cream.

And slowly, slowly he would slip, bit by bit, back to his old ways.

Until the next weigh in of course where the whole tiresome saga would begin again.

The problem was that he had two goals – enjoying food and losing weight – that were polar opposites.

It was inevitable that sooner or later he’d fail.

It’s a bit like trying to head north and south at the same time – it just won’t happen.

I’m different. I’m not a foodie. I could eat cold beans out of a can and be happy. I see fancy meals as a waste of money.

I see spending 4 hours to cook a meal, only to consume it in five minutes as all rather a waste of time. But I’m odd.

However my complete indifference to food has made it easy for me to lose weight. I can live on chicken and salad for weeks on end without worry.

That’s how you need to get with your finances if you want to save money.

Trying to be my friend – and find ways to live a slightly crummier version of your current life simply doesn’t work very well. Don’t buy a Diet Coke if you want to lose weight – drink water.

You’ll lose more. You’ll lose it quicker. And you’ll hit your goals sooner.

So here’s the thing that saved me the most money – I simply stopped wanting to buy stuff.

Because when you’re not fighting against yourself – when you truly don’t care whether you get the new iPhone or not for example – its just as easy to leave the money in your bank account.

So how do you stop wanting to buy things?

Buyer’s Remorse

Spending money on things you want can be addictive. Don’t most of us dream about winning the lottery and what we’d do with all that money?

Yet there is a reason why the phrase “buyer’s remorse” exists.

In most cases the joy of spending money is only temporary.

Consider all the money you’ve spent in the last few years and ask yourself just how much of it really improved your quality of life long term.

Oh sure that video game system might have been awesome fun at Christmas. But now it’s sitting unused in your living room just gathering dust. That’s several hundred dollars just sat there reducing in value.

The same principle applies to much of our spending. When you consider a purchase over the long term you realize that most unnecessary purchases are really just a “quick fix” that won’t bring you long term pleasure.

Take Pleasure In Your Savings / Investments

So if buying the latest gadget won’t bring you long-term happiness then what will?

As I mentioned personally one of the things that brings me consistent pleasure is financial stability.

Not worrying about surprise bills. Not losing sleep over accruing debt. Not feeling sick when I check my bank statement.

These are the things that make life seem more colourful, safer and more enjoyable.

So instead of taking pleasure in things that you’ll soon get bored with (requiring more spending to satisfy that desire again) try to take pleasure in watching your debt going down and your savings going up.

By tracking your finances you’ll be able to keep constant tabs on your finances with minimum effort and watch with pleasure as your funds – and hence your security – keep on rising.

Try to imagine just what you can do with that money in the future?

Personally I’d like to retire to a villa in the mountains of the Mediterranean. Miles from anywhere. Growing my own vegetables. Spending my days sat in a hammock reading a good book or swimming in my pool.

Will I ever get there? Who knows? But dreaming big like this helps me to avoid unnecessary consumer purchasing and instead willingly put money towards the dream each month.

Appreciate That You Can Never (Consistently) Keep Up With The Joneses

A lot of what we buy is an attempt to gain social acceptance – even superiority.

All those fake tans, shiny new cars and big houses. Those designer clothes and the timeshare in the Caribbean.

If they truly bring you pleasure then great, but the reality is that I know a lot of people who spend vast portions of their free time and disposable income just trying to impress other people.

As Tyler Durden in Fight Club says:

You spend money you don’t have, on things you don’t want, to impress people you don’t like.

It’s insanity. And there’s no way you can win. Every time you upgrade your car, they’ll upgrade to one even bigger and better.

So just stop worrying about how people see you.

Invest your money. Build a nest egg and plan for the future. All those people who mock my unfashionable ten year-old car?

When I move to the Med I’ll be the one laughing while they’re still trying to pay off that BMW that they can’t afford.

Appreciate That “Rich” People Often Aren’t

Most people I know who appear wealthy are often far from it.

They have divorces, child support payments, auto loans, excessive credit card bills and more. Their life is all one big balancing act.

All it takes is a short-term problem like getting paid late one month, or losing their job, or getting ill and the whole house of cards can come tumbling down.

So stop worrying about what other people are doing. Stop comparing yourself to other people or lusting after their lifestyle.

Decide on what works for you as an individual (or at least as a family) and base your budget on this.

Not on what your boss or colleagues at work are doing.

Decide Whether Freedom or Respect Takes Priority For You

I mentioned my tired old car in previous posts. And I’ll be honest; while people don’t flat-out make fun of me their opinions are often quite clear.

We’ll be talking about cars at work at someone will mention that they love their brand new (over priced) vehicle and couldn’t imagine driving some crappy old heap of junk like….

Then their voice trails away as they remember I’m sat there and they catch my eye with a look of disappointment.

It’s OK. I know my car is unimpressive. But it does get me from home to work and back. And at a tiny fraction of the cost of most people I know.

You know the people? The ones with the expensive luxury car yet who are always simultaneously complaining they’re broke? Me? Oh, I drive a heap of junk but I don’t worry about money.

So another way to stop wanting to buy new things is to consider what your main priority is; the respect of your spend-a-holic friends and work colleagues or gaining true financial freedom?

What psychological tricks do you use to drop spending unnecessary money? Please leave your thoughts in the comments section below…

Busy saving money? If so while there are all sorts of tips for spending less and living on a budget, they all pale into comparison to this one single money saving tip. Find out what it is by clicking through now!

Richard

Sun-worshipper and obsessive frugality blogger. For loads more money-saving advice come and join us on Facebook.

4 comments

  • This is the most valuable article I’ve ever read – thank you!!

  • frazer duncan says:

    What is really helping me is having a small emergancy fund of £750 which I keep in a seperate account . When I can not cope with a bill, rather than panicking and putting the bill, on a credit card I I can use the emergancy fund, and then top it back up, as quickly as possible.
    Its working for me, and I am finally paying off credit cards with every spare pound .
    Ive also been brave ,and cut up all the cards ,as long as the emergancy fund stays topped up I will be okay.

  • Thank you for your commitment in spending your money in the most frugal ways.I myself have tried living below my means but still finding more ways to do it so that I can also apply on my finances.Here in the Philippines~ we dont have much financial bloggers to whom we filipinos can lean on.I know some but still I’d like hearing or looking other sources and I’d find yours more interesring.Thank you for sharing and hope to read posts from you.

    • Thanks for your comment Lanie. I don’t really know any PF bloggers from the Philippines I’m afraid, but I think a lot of basic concepts can cross boundaries. For example, I’m based in the UK, but still follow a load of US bloggers and I’m constantly learning from them. Not everything applies (credit card churning is less of a thing here IMO) but there’s still lots of stuff you can take away and apply to your specific situation.