Saving Money Tips

Real Saving Money Tips Focus On Substitutes

One of the key realizations anybody who’s looking to save money should have is the idea that everybody is an economist. All of us are economists. Economics is the science of rationing scarce resources. Think about it. If money was in infinite supply and all the food and sustenance that we need is in infinite and can easily be accessed, there would be no need for economics. In fact, there would be no poor people. There would be no need to budget. Everybody would be rolling around in BMW. Unfortunately, that’s not the reality.

Resources are scarce and all of us casted in our personal way to act like economists. That is what economists do. They look at scarce resources and figure out plans on how to manage those scarce resources. A key element of this on a personal level is to understand that there are always substitutes. Substitution is one of the benchmark doctrines of basic economics. An economist doesn’t look at a particular situation and assume that there is only one way to fix a problem. The assumption in economics is that there are always substitutes.

For example, if you are a baker and you are going to bake goods and desserts, you can stick with sugar; you can try stevia or high-fructose corn syrup. Each of these substitutes has their own costs and advantages. That what an economist does. They have to assume that there is a substitute and they have to weigh each substitute to achieve an objective. Pay attention to the following discussion so you can fully understand that there are always substitutes:

Saving Money Tips

Don’t Assume That There Is Only One Choice

One of the main reasons people end up racking up a lot of debt or being unable to save a lot of money is that they always feel that there is no choice. They either have to buy something or not buy it. In many cases, they buy into these advertising mindsets that if they don’t buy something, then they are depriving themselves. They feel that they’re not living life fully and keeping up with their neighbors or people that they respect if they don’t make this buying choice. This may sound pretty ridiculous, but this is actually the thinking pattern of most people.

Most people are really honest with themselves that the reality is they don’t really need that much. People need air, water, and shelter. That’s it. The basics are exactly that. They are very basic so everything else is a want; everything else is a luxury. This is the bedrock holding up this unstated assumption most people have: there is only one choice. So once they find themselves at the department store looking at a particular item that they have to buy, there are no two ways about it. There’s no way to get around the problem. There’s no way to get to the side of the problem.

They have to buy it. Don’t assume you’re only stuck with one choice. Subscribing to this assumption is a surety way to doom yourself into poverty. You’ll always feel that you’re living paycheck to paycheck. You’ll always feel that however much money you make, you’re never making enough. Why? Because of your mindset. The key to opening that gateway to thinking like a super saver is to always assume that there is more than one choice staring you at the face.

Understand Why You’re Tricked into Thinking the Way You Do

You have to understand that there is a constant war for your mindset. That’s right. You’re always being bombarded with signals to make you think a certain way. This is not a philosophical statement. This is not some theoretical argument. This is reality. Every single year, trillions of dollars are spent on advertising budgets. These companies are run by CEOs who make good money. They are not wasting their money. They know that advertising works.

That’s why there are a lot of influences being sent your way every single day. It’s impossible to avoid these influences; however, it is possible to be aware of them. As originally said by the great reformer, Martin Luther, “You can’t prevent birds flying over your head, but you can prevent birds from making a nest in your beard.” The same analysis goes with advertising consumption messages. You can’t prevent these messages being sent your way; however, you can watch yourself and be aware of yourself so you don’t buy into these instinctively.

This is the key step in understanding why you’re being tricked into thinking that there is only one choice. In fact, if you’re really honest with yourself and you’re a deep thinker, you would realize that a lot of advertising actually uses cheap tricks that you’d be embarrassed to admit that you fall for time and time again. One of the cheapest tricks being used is a concept called social proof. Social proof works this way: when you see a lot of people looking at a particular direction or looking at the sky, chances are, you will do the same thing. Social proof is all about getting people to do something because a lot of other people are doing it.

The reason people behave this way is because of evolution. Think of yourself as in a savanna 50,000 years ago. You’re walking in a small group of hunter gather friends and all of a sudden, 9 out of 10 people just started bolting; they just started running. Chances are you would start running too. If you didn’t, you probably exited the gene pool because the reason people ran is because there was a saber tooth tiger or there’s a predator somewhere. There was an evolutionary behavior in doing what everybody else is doing.

Now that we have tamed fire and we have mastered the industrial revolution, there’s really less evolutionary pressure to do what everybody else is doing. Unfortunately, that’s hard-wired into most people’s minds and they are always convinced by advertisers that there’s only one choice. Another common trick used by advertisers to trick consumers into thinking that there is no choice when it comes to buying decisions is the halo effect.

The halo effect really is stupid. I mean, anybody who went to college or has some type of education would see right through it, but unfortunately, even if you have a PHD, you will fall for it time and time and time again. Most common example of the halo effect is when you have a very good-looking model hawking a cosmetics product. The reality is that the cosmetic product did not make the model good-looking. The model was already good-looking to begin with.

However, the halo effect is so powerful that we reverse logic. We think that because this model is endorsing this product, this product made the model good-looking. The same goes with LeBron James endorsing a basketball sneaker. The same goes with a financial guru endorsing a mutual fund. Unfortunately, we don’t really break our thinking process when we see ads that employ the halo effect. As a result, we fall for these ads time and time again. By the time we need to make a decision, we feel that there is only one choice because of all these different advertising mind tricks.

Focus On Results with Different Processes Instead Of Limited Choices

Instead of looking at your buying decision as either you have to do something or not do it, look at the buying decision as a process. When you look at things as a process, you break them up into objectives, methods, and process. When you break things down that way, you are able to neutralize a lot of the bad advertising mind programming that you’ve been subjected to. When you look at the objective, you will realize that there are alternatives; there are substitutes.

This is why the economists of big banks make the big bucks. They are always able to emotionally divorce themselves from the situation. They don’t let themselves be put into a panic mode where they have to press a button and the button is the only option. Instead, they break things down rationally and logically in terms of final objectives. Once you are able to do that, you can then back track and see which other routes you can take to achieve the same objective.

Don’t Get Tricked By Seeming Scarcity

As mentioned above, human beings are all essentially economists. We may not all work for banks, we may not all work for government financial regulatory agencies, but we are all economists in our own private lives. We manage scarcity. The key to successful saving mentality, however, is to not get tricked by manufactured scarcity.

Once you assume that everything is scarce, this will give you some logical breathing room because you already assume that things are scarce and you are managing your resources. When a particular ad or a particular buying opportunity appears and you are being pushed by seeming scarcity, you would realize that this is a redundancy. Things are already scarce. Instead, I’m looking at different alternatives.

Being able to establish a mindset that sees substitutes and alternatives, you increase your ability to save money. Moreover, you increase your ability to fight off mental assumptions that tend to push you into spending money you don’t have trying to please people you don’t really like. In other words, pushing you towards a life of consumption that doesn’t really do you any favors.

How To Save And Budget? Always Think In Terms Of Comparisons

A lot of people think that saving and budgeting requires lots of skill. A lot of people think that you almost need to go to a special school or you need to do a lot of research so you can properly save and budget. This is a very convenient way of thinking because it frees the people up from having to put up the effort to adopt the right savings mindset. You have to understand that if you want to figure out how to save and budget, you only need to think a certain way. That’s right, you only need to change your thinking patters so you can know how to save and budget in any type of circumstance, in any type of situation. The people who effectively save and budget do so as a habit.

People who know how to buy only the right things and to put enough away for a rainy day, do so out of instinct. The good news is that this is learned behavior. If they can learn it, so can you. So how do you figure out how to save and budget? One of the biggest ways to do this is to always think in terms of comparisons. When you are faced with a buying decision and you always think in terms of comparisons automatically, you can quickly figure out how to save and budget for that particular situation. Make this a habit. Keep the following tips in mind.

Don’t Assume You Only Have One Option

People assume that when they are looking at a particular product and they decide to buy that product, they assume that they only have one option. Once you assume this, guess what? You are trapped. You fell for the marketers’ trick. And the marketers are basically reeling you in. The reality is that you have a choice. It is a big market out there and there are always many options. You have options in terms of brands, you have options in terms of models, you have options in terms of functionality and benefits. Always keep this in mind. If you are trying to figure out how to save and budget in all types of situations, you only have to adopt the assumption that you have more than one option.

Don’t Assume You Have To Buy Now

Another popular trick that ensures that the people stay deep in debt is that thinking that they have to buy now. You have to buy immediately. If you fall into this thinking, you are not going to get out of debt. You are going to sink deeper and deeper into that debt hole. That is a reality. There’s no two ways about it. If you want to understand how to save and budget, you have to first realize that there is no law. There is no requirement that you buy now.

By giving yourself some breathing space and some time, you can look clearly at your buying decision. You might find the weaknesses in your logic. You might find that you really do not need to buy right now. You might find that there might be cheaper alternatives. This is a crucial step in thinking in terms of comparison. Comparative thinking is a very important part of a. The techniques you have to know so you can know how to save and budget effectively.

Compare Different Options, Different Times, Different Vendors And New Versus Old

Always keep in mind that there are different options you can use to fill the same need. If you definitely need to fill that need right now, keep in mind that there are different times to feel that need. If yo need to feel that need right now, then you have to understand that there are different vendors and you can buy used products. By always thinking in terms of comparisons and thinking this way automatically, you can effectively figure out how to save and budget.

How I Save Money

How I Save Money: Using the 30-Day Rule to Defuse “Needs”

Believe it or not, a lot of the stuff that you spend money on are not the stuff you need. This is probably not a big revelation to you. This is probably not a big surprise. However, you might be rolling your eyes. You also understand that, sure, these items that I am spending a lot of money on may not be needs but they feel like them.

In other words, when you determine that you need to buy something, it is very hard to stand up to the emotional rush of buying those items. If you feel this way, you are hardly alone.

This is the reason why many Americans are struggling with credit card debt. This is why many people face a very common situation where the more money they earn, the more debt they find themselves in. In other words, the higher their income, the higher their “needs”.

If you are struggling with constantly buying that you feel that you need, here is a very important tip. Use the thirty day rule. This plays a key part in how I save money and I suspect it will help you save money as well.

How I Save Money

The Power of Artificial Scarcity

One of the biggest reasons why Americans find themselves rushing into buying stuff that they think they need is the power of scarcity. Marketers have mastered the illusion of artificial scarcity. They always throw out terms like “while supplies last”, “limited stocks”, or “for a limited time only”.

All these emotional triggers basically force you to make a decision immediately. They know that once you make buying decision, it is very hard to stop that buying decision. That is how the human mind works.

The good news is, when you use the thirty-day rule which is to give yourself thirty days to buy anything, the power of artificial scarcity evaporates immediately.

There is no emotional rush to buy right now. You do not feel like you will be losing out on anything because you have imposed a thirty-day rule on yourself. This is a crucial tactic that I employ. This is how I save money. I suspect that it will work as effectively for you.

Urgency Urges People to Buy Stuff They Regret Later On

There are also ways to build a sense of urgency in the minds of the buyer. This all part of the modern science of marketing. If you feel that you need to buy something, you might want to step back and critique why you feel that need. You might see that all these emotional impulses are just rooted in certain tricks used by marketers.

You can short circuit all of that by using the thirty-day rule. Now this is a very important trick because by putting that huge block of time in front of you, it gives you the time and the space you need to fully understand what it is that you really need to buy. Most importantly, the thirty-day rule helps you prioritize what is important.

This is a crucial part of how I save money because it helps me make a mental map of the things that are important, the things that are crucial, the things that are necessary, and the things that can wait another day. By using the thirty-day rule, you basically give yourself a time out. Instead of you being all heated up and emotionally engaged you can start looking at the things that you want to buy with the proper perspective.

Once again, this is an important part of how I save money. I give myself the time and the space to properly decide. You should do the same thing to. I suspect that you will save quite a lot of money if you use the thirty-day rule. Things that appear to be crucial and necessary might turn out to be what they really are: luxuries.

Living Frugal

Living Frugal and Happy Means Doing More With Less

There’s an old Zen Buddhist saying, “Less is more.” Well, a lot of Americans might roll their eyes on this saying and thinking that it’s just another Buddhist spiritual mumble jumble. There’s actually a lot going on for this phrase. In fact, if you are able to do more with less, you are, by definition, saving quite a bit of money and most importantly, saving your most valuable asset: your time. There is an art to doing more with less. It’s not a science that you can just reduce into a checklist or distill into a spreadsheet. Doing more with less takes a lot of effort. It also takes a lot of patience. It’s not something that you can do overnight.

However, once you have developed an eye for it, it can easily become a habit that will help you save more money and build a bigger nest egg many years down the road. Here are some key strategies that you can employ so you can do more with less. You have to remember that you have to tweak these different tips so that they apply to your specific situation. The problem with many financial self-help books, blogs, and other online resources out there is that they tend to give you a bottom down or a cookie-cutter approach.

Since every person comes from different backgrounds and has different ways of doing things and approaching things, we’d rather give you some broad framework so that you can then tweak for your particular situation. Our framework involves the central idea that living frugal and happy means doing more with less.

Living Frugal

Use Products Sparingly For Maximum Value

Interestingly enough in the United States, we are forced to consume in huge amounts. It’s almost deemed as some sort of personal insult or some sort of personal deprivation if you don’t blow through a huge bottle of shampoo in a week. The same goes with food. The same goes with clothing. Part of this is due to just advertising culture that tells you in so many ways and repeatedly every single day that you’re less of a person if you don’t consume a product fully and quickly. Don’t fall for this lie.

The reality is that only a drop of shampoo is enough to lather your head to take a bath or take a shower. The same goes with clothing. There’s really no law that forces you to replace your wardrobe every few months. You have to deprogram yourself in terms of the amount of product usage that you should allow yourself to do. You can fully enjoy a product without having to use up that product. The moment you realize this and apply it to your particular situation, you can use products sparingly for maximum value and really stretch those recession-era dollars.

Use Products for Maximum Life

In addition to maximum portions of products, products also have maximum lives. I am, of course, talking about appliances, gadgets, and other items that are not consumable. You have to use whatever products that you have with their maximum life in mind. Thanks to modern marvels of manufacturing technology, long gone are the days of products that you use only once and you throw away after a short period of time.

While America did pioneer the concept of program obsolescence, more and more consumers are waking up to the fact that modern manufactured products actually have a longer useful life than advertised. Make this fact to your favor. Resist the urge to throw away gadgets just because you fully used it. Extend it for its maximum useful life.

Use Products in Different Settings

Another way modern American culture programs people to be basically consumption robots is the concept of “one item, one use.” When you turn on the TV and you turn on the shopping channel, you get infomercials hyping up the latest product and for the most part, this product has a very fixed range of uses.

The subtext and assumption is that you’re only going to use this product within this fixed range of uses. When you are a bit more creative and imaginative regarding the use of the products that you own, you would realize that you can use them in many different settings.

Of course, I’m not advocating that you use them in a very unsafe way, but there’s many ways you can use a particular product in different types of settings with different uses and still preserve the life of the product.

Don’t Assume That If You’re Using Less, You’re Denying Yourself

Again, to reiterate my earlier point, don’t fall into the modern advertising mindset that just because you’re using less of a product, you’re basically suffering; that you’re not living life to the fullest. You have to remember that modern products are sold to sell a lifestyle.

Unfortunately, that lifestyle doesn’t work to your advantage. It’s only worth dollars into the pockets of advertisers and the bankers who finance them. Don’t fall for the hype. Focus instead on what you’re getting out of the product and whether you exercise a lot of control over your own life. That’s the real victory.

Don’t Assume That Denying Yourself Is a Bad Thing

Another underlying philosophy in modern Western consumer mentality is that if you deny yourself, it’s a bad thing. In other words, you need to have your cake you needed too. Worst of all, you need to eat dessert before dinner. In other words, you need to eat your dessert before the main meal. The reason this type of mentality is so prevalent in the Western world is because it fuels the consumption. It fuels the economy. It fuels finance capitalism. The problem is it really turns people into organisms that define their happiness based on the product they consume.

If you take this to its logical limit, you would see why anti-depressants and anti-anxiety medication are consistently at the top three medications prescribed in the United States and other advanced economies. People have forgotten the art of being happy. They’ve forgotten the art of doing without. In fact, when you deny yourself that gadget that you wanted or that sugary snack that you wanted, it actually feels great because you reiterate control over your life. You re-establish some sort of voice in how you decide things and this can be a source of strength. Most importantly, it can be a source of savings.

You’re Not Being Cheap; You’re Being Wise with Your Resources

Another lie that is pretty common in American mass media is that if you’re always looking to save money, you’re being cheap. It’s as if being cheap is like a bad thing. It’s like some sort of a black mark. The reality is that there is a big difference between being cheap and being frugal. A cheap person will always just look at the price. A cheap person doesn’t really care about the value, quality, or total cost of ownership. It’s all about the price. A person who is being wise with his/her resources or a frugal person is a person who’s looking to maximize value.

In other words, this person is not afraid of paying a little bit more for a particular item as long as that item has maximum value over the life of the item compared to alternatives. That’s the big difference between being cheap and frugal. Make no mistake about. If your idea of saving is just to be cheap, you’re playing a losing game. You’re going to lose out on quality and you’re going to lose out on product life. You have to strike a balance between value and cost. They are two totally different things.

Adapting the mindset of “doing more with less” takes a bit of work and just like with any character-building experience, your character only grows with each new experience. With each savings victory and your ability to control yourself, you become a better person. You have to look at savings as one aspect of self-control and self-development. Don’t go with the flow. Don’t do what everybody else is doing. Otherwise, you will end up with more of the bad savings results that you have been getting up until this point in time.

Save More Money

Save More Money by Timing Your Needs Correctly

One of the easiest ways to get into a lot of credit card debt is to feel that you need to buy right now. Make no mistake about it, modern marketers are so skilled in creating demand in the eyes of the typical American consumer, that it’s almost unavoidable that you will whip out your credit card. In many cases, American consumers instinctively whip out their credit card whenever the marketer says some magic words. What magic words are these? While supplies last or limited stocks.

You have to understand that the scarcity factor in marketing is so powerful because it is hard-wired into our primitive brains. Back when humanity was composed of hunter and gather bonds, we had to equip resources or gather resources as quickly as possible because those resources aren’t going to stick around. That’s when the reality of human existence for thousands of years. Well, things are different now, due to modern mass manufacturing.

The scarcity is actually more about the distribution of man-made problems rather than technical or commercial problem. You don’t have to take action now or lock-in now or else you won’t get to buy that stuff that you’re interested in. Chances are high that there would still be inventory leftover tomorrow or the next week.

One of the best ways you can counteract the tremendous power of scarcity marketing is to time your needs correctly. If you want to save more money, you need to pick up these very powerful skills.

Save More Money

Urgent Is Not Always Urgent

You might feel that you need to buy something right now, you might feel that you need to go to the store or go to the mall to pick up this particular product or you might be losing out. The reality is that if you look at the things that you need to urgently buy chances are you don’t really need to buy them right now.

Outside of medical emergencies, most urgent purchasing impulses that you feel really don’t deserve the urgency. This is a key realization that you need to have and appreciate if you truly want to save more money. If you are able to develop this personal discipline of clearly understanding what is urgent and what isn’t, you would go a long way in your ability to save more money.

Realizing False Scarcity

One of the most effective ways you can resist the need to spend on a product immediately is to understand how false scarcity works. In most cases, they involve the phrases I’ve mentioned above. This triggers highly irrational human impulses and people push to buy immediately. Well, resist that temptation, always think about the fact that whatever product is being pushed your way there are probably alternative products out there.

In many cases, the sale might be extended, even if the particular sale that you’re interested in isn’t extended don’t feel that you’ve lost out. If anything, celebrate the fact that you beat artificial scarcity or false scarcity. If you truly want to save more money, you have to able to recognize false scarcity and have the proper mindset and resistance to avoid these charms.

Debt Free Living

Debt Free Living Begins By Always Thinking of Resale Value

If you want to get out of debt, you have to really cut down on the new stuff that you buy. In the same way, if you want to lose weight, you really need to cut down on the food you eat and move around more. It is very easy to advise people to save money; it is very easy to advise people to look into debt free living. The mechanics are actually quite simple, the steps are pretty self explanatory.

Unfortunately, finding the personal will to do it is another matter entirely, debt free living is difficult because it involves changing how you think. The good news is that you don’t have to develop a debt free lifestyle overnight, you don’t have to adopt a debt free attitude instantly. You can take baby steps, you can take small incremental steps and challenge how you think for you to adopt a savings mindset that will lead to debt free living.

One of these small initial steps that you need to take is to start thinking in terms of resale value. Whenever you buy a product, always think of whether you can resell that product. While this might not always apply across the board for everything that you buy, this piece of advice applies to enough of your purchases that it can put a dent on the amount of money that you spend. This is especially important for durable goods like cars and major appliances.

Keep the following factors in mind so you can adopt a resale value mindset instead of having to get rid of stuff that you bought and buy new stuff on a credit. You can minimize your debt load by selling off used appliances and using some of that proceeds to offset the amount of money you spent to buy a replacement. Keep the following factors in mind:

Debt Free Living


The more durable the product is, the higher the likelihood that it has a decent resale value. This doesn’t necessarily mean that it would have a very expensive sticker price. You’d be surprised as to the kinds of products in the market that are very durable and last a long time, but don’t burn a hole through your pocket.

Focus on buying highly durable goods because these might have high enough resale value in the future that you don’t have to spend too much money getting an up-to-date replacement.


Another key factor that influences the resell value of a particular product is the quality of its warranty. In many cases, products don’t have any warranty outside of warranties provided by law. The beyond-the-lookout for products would be lengthy warranties.

This ensures that the resale value of the product is higher than comparable products because the warranty protects the condition of the product for an extended period of time.

Brand Value

Unfortunately, not all product brands are created equal, this is especially true when it comes to cars. The resale value of Toyota or Honda is much different from the resale value of a Volkswagen or general motors products. Choose wisely, you might have to pay a little bit more now, but the resale value of your car can be so high over an extended period of time that it’s worth paying the extra premium.

If you want to get going on debt free living, the first steps that you need to do is to always think of resale value because this impacts your purchases later on, it definitely impacts the replacement value of things that you would want to buy in the future.

Savings Mindset

Saving Money Is Easy Is If You Find the Savings Opportunity in Any Situation

Make no mistake about it. If you want to save money and want to get the most value out of every hard-earned dollar that you make, you have to have the right mindset. Saving money is easy if you have the right mindset. There’s a big difference between people who save money for a rainy day and people who just can’t seem to save money.

It’s not even a question of how much money you make. It’s not a question of how much money you start with or the quality of your job. What matters is if you have the right mindset, this is what separates people who are able to save in any opportunity with people who are always looking for the right kind of opportunity or the right set of circumstances for them to achieve the financial outcome they would like for themselves.

If you would like to adopt the right savings mindset, you have to find the savings opportunity in any situation. Consider the following discussions to help you achieve such a mindset:

Savings Mindset

Don’t Assume You’re Stuck with One Option

One common mindset of people who just can’t seem to get it together financially is that they always feel that they are stuck with just one option. They just look at what’s in front of them and they think that that’s all they will have; that’s all they have to deal with. People who are able to save and put away money are always looking for alternatives. They never assume that the option facing them is the only option.

In many cases, something that may seem obvious is actually not that obvious at all. There are actually a lot of things going on in what would otherwise seem to be a bleak picture. Don’t always assume that you are stuck with one option. Always assume that there’s more than meets the eye. Always assume that there’s always a way out.

Savers Assume That There Are Always Alternatives

One key factor that separates savers from not-so-successful savers, or people who are just unable to save money, is a sense of alternative possibilities. Saving money is easy if you think this way. People who are always able to save assume that there are alternatives. They never assume for one second that they are only stuck with one option. They’re always looking at what kind of substitutes they can use and which other vendors they can buy from.

Is there an opportunity for a used item? They go through a checklist by habit and this checklist doesn’t happen overnight. You have to get into the right mental framework in terms of thinking of alternatives. This is how you are able to spot savings opportunities when an obvious situation you’re facing doesn’t seem to have any savings opportunities.

Be Aware Of the Costs in Trade-Offs

It’s haunting to think in terms of alternatives. It’s another to think in a very methodical way that actually leads to actual savings. These are two totally different things. You have to understand that when you choose one alternative over the other, there are trade-offs involved. The most obvious trade-off that everybody should be aware of is called opportunity costs.

In other words, I can always do one of many things at any one time and because I only have 24 hours in a day, my time is very limited. Also, I can only be at one place on planet Earth at any one time. As a result, I have to always look at all my alternatives to make sure that I get the maximum return on investment on my time. Another way to put it is, “I need to look at all my alternatives and make sure that I get the most return on effort.”

This is the best way to look at trade-offs because if you take one alternative, you might have overlooked another alternative that would’ve resulted in more dollars in your pocket. Another way to look at the situation is that if you look at two alternatives and you pick one, you could’ve taken another alternative that would’ve cost less money to take. You have to always look at the cost and potential pay-offs. This is what separates great savers from mediocre savers.

Are You Willing Trade Time For Money Savings?

If you don’t have much money, you have to always remember that you can always trade time for money. This is one of the success secrets of very wealthy people. Not all wealthy people were born with a silver spoon in their mouths. In fact, Sam Walton, the founder of Walmart of the United States, started Walmart with a huge amount of debt. He didn’t start out with nothing; he started out with less than nothing. He started out with a lot of debt. What he did and other successful people did was they looked at their time as an asset.

Don’t just think of yourself as having a disadvantage because you don’t have any money. You have to remember that your time can also be converted into money. If you look at savings and investments from this perspective, you would realize that there is really no excuse because if you are able to convert time into money, then nobody is really broke because poor people the world over have a lot of time. They can choose to convert that time into money. You have to understand this concept so you can then trade your time for money savings.

In other words, if you are going to save, let’s say $10 in taking an alternative that will take a little bit longer to do, you should do that because it would translate into cold hard cash in your pocket. You wouldn’t have to spend that money. As the old saying goes, “A penny saved is a penny earned.”

Be Aware Of Other Benefits besides Savings

Another key mindset that separates successful savers from mediocre savers is that successful savers look at all benefits. They don’t look at benefits just in the form of dollars and cents. They look at benefits also in terms of efficiency, in terms of opportunities that opened up, also learning experiences.

You have to remember that not everybody starts the game of life being able to make a slam dunk. Not everybody can start out at the top. We all have to pay our dues and the key part of that is learning experiences.

So you have to look at every situation in terms of the benefits you would get out of that particular situation. Of course, this is very different from wishful thinking. This has to actually lead to substantive benefits down the road.

Don’t Forget About Intangible Benefits

A lot of newbie savers look at the investment of their time as either leading to savings or not. This black-and-white way of thinking really paints you to a corner. You have to understand that many experiences actually produce benefits, but they cannot be reduced to dollars and cents. In many cases, these benefits turn out to be more valuable than any short-term financial gain.

In finding the savings in opportunity in any situation, you gain a mindset that will help you save better. Saving money is easy if you have the proper mindset. When you’re able to save better, you can invest in more of your hard-earned money and make it grow.

Debt Free Lifestyle

Debt Free Tips – Use Only What You Need for a Debt Free Lifestyle

If you’ve noticed that the more money you make, the more debts you rack up, Welcome to the club! What’s happening to you is hardly unique. More and more Americans are increasingly finding it hard to live a debt free lifestyle; chuck it up to our culture. American culture is all about instant gratification, it’s all about eating your desert now and worrying about paying for it later, if things aren’t helped by those slick credit card companies. But by the end of the day, there’s really nobody to blame but our lifestyle. If you want to manage your finances, you have to focus on living a debt free lifestyle. The good news is that it is easier than you think; you only need to adopt the right mindset.

One of the most fundamental savings mindsets that you can adopt so you can live a debt free lifestyle is to use only what you need. When you do this, you’re focusing on stuff that you actually use, in other words you are actually fulfilling a need instead of spending money for stuff that you want; these are two totally different things. Keep the following facts in mind, so you can develop a debt free lifestyle based on using only what you need.

Debt Free Lifestyle

Small Amounts Lets You Appreciate Products More

By using products in quantities that meet your needs, you are actually increasing the enjoyment you get out of that product. You don’t really need to use up a huge gallon jug of shampoo, you just probably need a few drops to truly appreciate that product. Using only what you need helps you to appreciate the products that you use more.

Small Amounts Lets You Appreciate Value

By restricting yourself to a small amount of the products that you regularly use, you increase the value of those products in your life. You realize how necessary they are, you realize the kind of manufacturing technology, the compounds, the parts that go into those products.

This gratitude, this appreciation goes a long way in your enjoyment of that product. Also, since you use less of that product, this can help you save more money, this can help you put away debts, pay down your credit card bills and essentially get on the road to a debt free lifestyle.

Point Of Diminishing Returns

A little thing that you have to keep in mind regarding products that you use in your daily life is the point of diminishing returns. There is a point where you use products at certain volumes and once you pass that point, you’re really not enjoying their product at a higher level. Your level of enjoyment and your level of use can actually be maximized when you use that product less.

Many Americans think that they are depriving themselves or that they are denying themselves if they use very small amounts of daily products. The reality is that in many cases, the point of diminishing returns of these products is actually very low, so if you only need a small amount of that product you truly get maximum use. When you realize this, you are able to use less products and save more money.