Everyday Cheapskate

Recently, I asked five friends this question: How do you save money? "Buying things on sale" was the most common answer. "Bringing lunch to work" and "finding the cheapest gas" were other responses. But only one person got it right: "I put it in a safe place." Bingo!

Cutting expenses is the way to spend less so you have money to save, but unless you actually are putting it aside for some future use, you're not really saving at all. You only are spending less.

No matter your situation, whether you are financially comfortable or in debt up to your eyeballs living paycheck to paycheck, you need money in a savings account that has your name on it.

Saving money quiets the must-have-everything-now monster that runs us ragged. It calms our fears. Having money in the bank promotes contentment.

If you cannot save a great deal of money right now, that's OK. It's not the amount you save in the beginning that matters; it's the fact that you make saving money a regular habit.

Ideally, you should save 10 percent of your net income. If you can't do that right off the bat, start with 5 percent or whatever amount you can, even if it's only a dollar or two each week. Determine the amount. Then commit to it. Keep putting at least that amount into your account week after week. Quickly you'll figure out how to make it $3 and then $5, $10 and beyond. Soon you'll be hooked on saving.

Cutting costs without sacrificing your lifestyle or causing some other area of your life to collapse is the way to grow a savings account on your current income.

What you need are a set of basic principles that will guide you into thinking in new ways.

Like any meaningful change, it has to start with a change of attitude. Consumerism has become a religion that goes against the teachings of just about every other religion, belief system and moral code. Think about what you really believe to see whether your buying decisions are motivated by your values or by a retail sale schedule.

Ask yourself before you buy anything: Do I really need it? How often would I use it? Where would I store it? How would this look sitting on the table at a yard sale? How much would it cost to dry-clean (dust, polish, insure, fuel)? Sometimes just stopping to think will prompt you to turn and walk away.

No matter how much or how little you have to save right now, develop a saver's attitude. Our beliefs and attitudes about money have a powerful effect on our behaviors. I've watched people with ordinary incomes do extraordinary things simply because they stopped feeling entitled. Instead, they determined that no area of spending was off-limits for serious cuts. They became habitual savers, and that has made all the difference.

Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including her latest, "Can I Pay My Credit Card Bill With a Credit Card?" You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.

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