Saving Tip 3

So this isn't going to be so much a tip but a piece of advice. I think deciding to save money is basically the same as starting an exercise program or a diet. It makes you feel good - I'm doing something good for myself... but boy is it hard. Those new pair of shoes would be killer with that new dress...

So my advice. Any good exercise plan or diet in my opinion has to have leeway. If you go into it saying I'm going to workout everyday for three hours and only eat celery two days in you may be a Skinny Minnie but you're probably dying for a hamburger and a glass of wine and a night watching bad reality TV.

Saving is the same way. If you go into it saying I'm never buying anything I don't absolutely need ever again you're probably going to go crazy. Most people aren't comfortable using the cotton from vitamin jars instead of buying cotton balls (saw it as a piece of advice on a website).

My must haves: money to do fun extras - vacation, nights out with friends, new clothes (hello I practically live at The Limited). But I know if it came down to it there are things I could give up: cable TV (gasp), Netflicks (although K would disagree)...

Decide what are you must haves and be honest with yourself. Sure I love my cable TV but I don't absolutely have to have it.

Once you have your must haves - figure out a way to work them into your budget. So I can't have a shopping spree at The Limited every week but I can treat myself to something maybe once a month (using my coupons of course). Or if I want to have a huge blow out night with friends then I need to eat in the rest of the week (which will also help your diet).

Now, lets have the tough love and look at what you don't need. Everyone is quick to say they can't save because they don't make enough money. I'm sorry, but I'm not sure this is really a good answer. I think no matter what you make you could save something. I'm talking even $5 people. The problem is people don't want to give up certain things. You have to look yourself in the mirror and say: my starting a savings plan is the same as starting a diet - it may hurt for awhile but in the end it will be worth it.

So, my advice today... you can't spend spend spend but you also can't save save save. Budget a little extra for your must have items.