Things You'll Need:
- self control
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Step 1
Cultivate some paranoia.
People who are good with money are so because they don't feel safe without it. What if something happened or they got fired? The reason these folks can make the same amount as you but always seem ahead while you constantly struggle is because they have a bit of a buffer saved up between them and the next check. You should always have at least one month of salary put back even if you have to live like a pauper for three months in order to save it. When you find your spending approaching the buffer amount ease back on your spending
You'll find that this method provides not just piece of mind but it is actually cheaper for you in long run to maintain higher balances in your bank accounts and to pay all bills on time. Without those pesky late fees and overdraft charges you'll have even more money to do the fun stuff. -
Step 2
Look for that angle.
People who are good with their money refuse to pay full price for anything. Between auction sites, discount internet sites, craigslist and sales in the real world these people do research before making even minor purchases. Why buy coffee at some blood-sucking international coffee conglomeration every morning when you could have better and cheaper coffee buy buying even the premium stuff and a nice mug to keep it hot? Why buy shoes at the shoe store when you can merely try them on there and then purchase them for pennies on the dollar online? Always be looking for ways you can save a buck (or two); it adds up. -
Step 3
Protect what you do have.
Always be properly insured. It may seem like an extra expense but if you get sick or your car gets stolen, you drop your phone, your computer crashes or your house burns down you'll be glad you were insured and you'll save money in the long run.
I have seen people financially ruined by the lack of insurance. -
Step 4
Figure out some way to make some residual income, if only a small amount.
Money for work you've already done or money that your money is making by means of interest, dividends or appreciation is key to financial success. It is extremely important that you find some way to make money that does not require your constant supervision. Ehow is one way of making residual income; you may want also to look into investing, real estate rental, or the purchase of a website. There are ways to earn residual income even in an economic downturn. -
Step 5
Learn how to tell yourself no.
Ultimately you must learn self control. Before purchasing something new ask yourself how much you actually need it. How much of an improvement in your quality of life will it provide over the old model?
