Save Until it Hurts
The good news is that saving money is not hard. What’s hard is choosing *not* to spend. Successful saving is a healthy mix of self-denial and torturous ignorance toward the things you want. But alas, still not difficult.
Here is the reality of saving. I know two things about my income. We make enough and there is plenty left over to put in a savings account. But the real test is that saving should hurt. If it isn’t, you’re doing it wrong.
Save early, save often.
I get paid biweekly and my wife gets paid weekly on occasion. But she gets paid mostly on a monthly basis. While she does make more than me (still don’t get why men fret over this), the frequency of her income is not nearly as predictable as mine.
The monday following each payday, I transfer 20% of my paycheck to an account unrelated to my personal bank (SmartyPig if you’re wondering). I don’t use my personal bank because instant access is the kryptonite of successful saving. SmartyPig provides a barrier to access or rather it slows my access.
Putting away an amount I am comfortable with is a tease and does nothing for my will power. If you want to see real progress, put away an amount that makes you nervous, an amount that makes you spend smarter, an amount that makes you think twice before every purchase. It’s painful but it works.
Why the pain is worth every dime
Everyone has experienced financial pain. The pain that comes when you wake up and realize you have no money and all the bills are due yesterday. But why must that pain always be the result of having no money? If I’m going to struggle to pay a bill, it should be because I’ve been saving too much money and not because I’ve been spending it all.
It’s one of those things that is incredibly obvious but tragically ignored time and time again. I didn’t discover anything new. I’m merely putting to rest my own ignorance on the topic of saving. As with all things revolving around personal finance, your mileage will always vary. Not all married couples can utilize two incomes. So save early, save often.
