In our last newsletter, Hanna was doing her best to reassure Sally that she doesn't need to carry the weight of the world's problems on her shoulders. It's a common scenario, and hardly surprising when you consider how constantly the media bombards us with bad news. Before you know it, everybody's problems become OUR problems when in reality, the only problems we need to concern ourselves with are the ones close to us. The ones in our own little worlds; the ones close to us which affect us directly.
Because, whether it be a new world leader, a natural disaster or a zombie apocalypse, the most any of us can do is control the things you can control. You can take steps to ensure that you always have food and money put by should you ever need it. You can nurture and grow your own little world so that whatever happens, things will be OK. It isn't hard and you can begin right away.
So let's get started!
In a nutshell, the way to build a nest egg is to spend less than you earn and keep the difference. Which is easy enough to say, but how exactly do you achieve this? The problem for many people is that they don't know how or where to start. Today's newsletter and the ones which follow explain how, one step at a time.
Each step is just as important as the other in its own way, but the one we are going to focus on first is changing your mindset. The major difference between people who are good at saving money and people who are not is just that - mindset. Once you have the right mindset, you can achieve pretty much anything! So, first things first:
Nobody can look after your money better than you do. Nobody – not even the bank, because the only person who has any control over how much goes in and how much comes out, is you. So the first step in taking control of your finances is accepting full responsibility for them. This means changing some of the things you may currently say or do. For example:
Stop saying things like:
- "I have no money because my parents never taught me how to save"
- "I can't save"
- "I had a bad day and splurged to make myself feel better"
- "YOLO" (You Only Live Once)
Start saying things like:
- "I have no money at the moment because I'm still learning to be smarter with money"
- "I'm learning how to save"
- "I don't need to spend money to make myself feel better"
- "I want to have a secure future"
Stop doing things like:
- Blaming other people for your lack of money. Putting the blame on someone or something else serves no purpose because at the end of the day, you are the one responsible for parting with it!
- Letting your emotions wreak havoc on your spending
- Thinking only of the short term reward
- Robbing Peter to pay Paul
Start doing things like:
- Accepting that YOU are the one in charge of your money
- Finding ways to get your emotions under control without spending (e.g. go for a walk, run a bubble bath, go and have a cuppa at a friend's house)
- Thinking how the money you spend needlessly today will affect you in the long term
- No more borrowing. Save until you have the cash or go without
If you recognise yourself in any of the things you need to stop saying or doing, make a vow to stop sabotaging yourself today. Become your own financial hero! Take charge of your situation and get to work on turning things around; we will show you how.
In the next newsletter we will continue discussing ways to work on changing your mindset. Some of the topics we will be covering include:
- Setting yourself a goal
- Learning that saving money is freedom
- Acquiring new frugal skills
If there are any more you would like us to cover in this series, write in to us and let us know. Also, if you know of anyone who could really benefit from our newsletters and learning how to be financially secure, encourage them to sign up for our free emails.
This simple tip saves me a fortune when times are lean and I have extra people to feed! With extra family members coming to stay and only my pension to live on, I was worried how on earth I was going to feed five people. So I created an emergency storage cupboard to help ease the financial burden. Every fortnight I put several items in the storage cupboard. Tinned tomatoes, pasta, long-life milk, a spare packet of biscuits, lentils - anything that won't 'go off'. I don't notice these few little additions in my usual grocery bill but it's surprising how it all adds up in my cupboard. Lo and behold I soon find that I have enough to make it through the lean days! It's important to remember to rotate and use the old and replace with the new but my storage cupboard is now well stocked and used only in emergencies. I don't worry any more!
Contributed by: Caroline Pinkstone
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That's all for this newsletter. We hope you have enjoyed it. Should you have any further questions on building your nest egg or any other money saving matter, drop us a line. We are here to help. More to follow in the next newsletter, until then, come and visit us on the Simple Savings website!
All the best,