When you do not save, it’s easy to wind up in debt. When debt is not paid, it has a negative impact on your credit score provided by credit reporting agencies such as Experian and included in your Annual Credit Report. Your FICO score, provided by myFICO and used by over 90 percent of lending institutions, will also be affected. This will lessen your ability to get a loan or a loan with better terms.
Let’s take note of the various money saving quotes from experts that will give us insight on how we view money and our finances. We should get ourselves in the proper attitude and mindset.
One popular approach on how to save money is known as the 50-30-20 rule. US senator Elizabeth Warren co-authored the book ‘All Your Worth: The Ultimate Lifetime Money Plan’ with her daughter Amelia Warren Tyagi, where she said: “50 percent of after-tax income should go to needs, 30 percent to wants, and 20 percent to savings and paying debt.”
It is often said that living within your means is one of the ways to save money, but you must have the right mindset to achieve this.
“Living on less than you make is a matter of controlling yourself, not a matter of math,” says best-selling financial author Dave Ramsey. He also says that “Personal finance is 80 percent behavior and only 20 percent head knowledge.”
Another helpful quote on this subject comes from Marsha Barnes of Finance Bar: “My top money saving tip is to become a master of your lifestyle. When I finally understood what I wanted from my life my spending and savings habit shifted.”
They may be little expenses, but if they occur often enough they add up to a big part of your budget. Eating out may not seem like a big expense but if done too often, it can take away a big part of your disposable income with very little room to save money.
Manoj Arora, author of From the Rat Race to Financial Freedom, says: “When you know the impact of little expenses, you will realize that there is nothing little in this world.”
Similarly, one of the country’s founding fathers, Benjamin Franklin, says: “Beware of little expenses. A small leak will sink a great ship.”
Another money saving tip is to have a targeted amount of savings. We should aim to save instead of letting expenses dictate how much money there is left.
No one expresses this concept better than famed investor and one of the world’s richest people, Warren Buffett. “Do not save what is left after spending… but spend what is left after saving.”
Having this mentality results in benefits beyond savings, as Warren Buffett’s business partner and fellow billionaire T.T. Munger knows: ” The habit of saving is itself an education: it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.”
In finding ways to save money, one must have the proper attitude and mindset. Take inspiration from the experts and let these quotes inspire you to save money.