If you search Google for “how to save money,” you’ll get 396 million results. See for yourself; I’ll wait.
With that many results, how is it possible that people still have trouble saving? I’m sure that one of your New Year’s resolutions was to save more money too.
Let me use a little analogy: One of my favorite movies is The Matrix. It speaks of a world in which there are two realities: one that’s the life we live every day, and another hidden behind this first layer. The first world is a dream; the second is The Matrix.
That has always fascinated me: Have you ever had a dream that you were very sure was real?
The instructor, Morpheus (played by Laurence Fishburne), is trying to teach the protagonist, Neo (played by Keanu Reeves), to fight under special rules of the game. In order to get Neo to learn, Morpheus screams, “Come on, stop trying to hit me and hit me!”
That statement reflects exactly what people have to do to start saving — and it’s the only trick that matters: Stop trying to save and save!
What do I mean by that?
Thinking about saving money is a waste of time. To be successful, you have to actually do it. Seriously! As soon as you finish reading this!
Go online or to your local bank and setup a CD.
Invest In a mutual fund.
Go to your bank and open up a separate savings account. Then gamify it and download a saving app.
Stop procrastinating and do it already! Then be consistent.
Don’t just do it for a few weeks. Force yourself to save with an automatic paycheck transfer of at least 10% on the first day of every month.
Seriously. Stop thinking about saving and just get to it!
That’s it.
Now you’re saving money. Congratulations!
And what happens after that?
In The Matrix, after Morpheus implores Neo to stop fiddling around, Neo begins to perceive the reality of the Matrix and realizes that it’s not so much technique as it is human will. That’s the source. That’s the true force; the real trick.
Human will is what turns your ideas into reality.
In the real world, if you set aside 10% of your income towards saving, on Day One your mind will immediately begin looking for ways to live on less money. This means that first month will probably be a bit, er … messed up.
However, by the end of the second month, you’ll have grown accustomed to living with 10% less income, and you’ll have found a way to reduce your expenses accordingly. Best of all, you’ll have been saving for two months.
And if you can’t reduce your expenses? The truth is, 95% of people who make that claim are simply making excuses because they’re unwilling to adjust their lifestyle. But if you’re among the other 5% who truly can’t set aside any money for saving at the moment, then keep your head down and keep grinding. You’ll eventually reach a point where you can finally save a little for the future. I know because I was there once.
For the rest of you, let’s get to it. Here’s an article highlighting some actual, practical tips on how to save money — but until you change your way of thinking, none of that matters.
So, what are you waiting for?
Photo Credit: JD Hancock
Hold on, I’m thinking….Ha ha.
You hit the nail on the head. It is easier to think about saving than actually do it. I tried to talk to a fellow worker(33 yo) about retirement and she said she didn’t have time to think about retirement. She came back from the weekend with a big tattoo on her arm. I was thinking, couldn’t you read about 401K plans while you were getting the tattoo? Then could have used the money by not getting the tattoo and started saving. I gave up at that point. The sad thing is that she is not alone. A lot of people are like this.
I had that coworker too, but she was in her late 50’s, making over 65k per year and lived in her mother’s basement. She said the bad economy caused her money problems. But she had been with the organization for 20+ years and had been at the top of the pay scale for more than a decade. She told me that she would never be able to retire because she had very little in her retirement account and her projected SS would not support her. Her money management habits were terrible, but she wasn’t interested in changing either. She used to joke about having to live on cat food and saltines in her old age. I don’t think she’ll be able to afford it, cat food is expensive. So many people seem to think that “something” will happen to save them. Most of us aren’t going to win the lottery so I don’t know what the anticipated “something” is supposed to be. You can always work a little extra, when you’re young, to make ends meet, but the older you get the more unrealistic that plan becomes.