Save not Spend

Sometimes I hear comments, and requests, and demands that "tickle" me.  I heard this comment the other day, "there are more coffee shops than people; you cannot build an economy on coffee shops".  The short story is, if every school leaver would save a small amount from their first pay, and kept this habit of SAVE, not SPEND as their motto, their middle age would be comfortable. Take out the savings first, then rely on the balance to live on per week/fortnight if discipline is a problem.

Over the years, when trying to put away savings for investment, I have asked myself many questions before just handing over cash, ie

• Did I need this article before I came into this shop
• Have I got an immediate use for this item
• Is this item necessary or does it just look cute
• Is this item needed or is it wanted
• If a particular item is outside the budget, just wait and be patient.

Most "feel good" spends are short lived, and can add up to a lot of ones savings, for example, cosmetic stuff; eating out at expensive restaurants regularly, eating prepared lunches by visiting the local sandwich/milk bar daily.

There are other ways to limit purchasing day to day items as well. To prevent a crisis in life is a great outcome, and can be achieved by having a life time of constant habits, and sufficient savings to draw on in an emergency.  Do not use credit cards, do not borrow money unless it is for an investment with potential gain.

Give yourself a "self esteem talk" session.  Seriously, those organisations who pay for advertising want a SPEND result from the consumers.  Therefore, more publicity and attention is given to the people who do not have budgets, plans, or constant thinking patterns when it comes to saving.  Some prefer to "fly by the seat of their pants", and that is fine; however, don't expect calm at a time of emergency.