A New Series: Save Beyond Your Means – Frugal Confessions

A New Series: Save Beyond Your Means

Many Frugal Confessions readers are well on their way or have all ready arrived at financial independence. Bravo to you! Stick around because we can use your useful insight over the next few weeks. However, I have a feeling that there are many readers lurking about that have not exactly caught onto the frugal mindset. Perhaps they don’t see its merit, or maybe they just don’t know where or how to start owning more of their paycheck.

There is no secret to saving money: earn money, spend less than what you earn, then deposit the savings. Yet so many people fumble along the way, evident by our national personal savings rate of 5.5%. Perhaps your cost of living is too high, you don’t make enough income for the lifestyle you lead, large expenses creep up for which you are not prepared for or are underinsured for, you have crippling student loan debt, etc. All of these obstacles and distractions exist to keep your money out of your bank account, and to keep you in the same financial situation for life.

I’d like you break out of that financial situation, wherever you may be. Starting on Monday, I will begin a series of posts over the next several weeks called Save Beyond Your Means. These posts will all focus on helping you to increase the amount of money you put into your saving account, thus increasing your financial independence.

Increasing your personal saving rate is not all about “do this, do that, stop spending here”; it’s really about changing your mindset as well. This series will focus on both: changing your thought process towards money, working, and your paycheck, as well as discuss tips and ideas on how to own more of your paycheck.

To get you started, I’d like to give you a rudimentary principle to think about through the weekend. In order to increase your savings, you must widen the gap between your earnings and your expenditures. There are three ways to do this:

  • Earn more money while warding off lifestyle inflation
  • Spend less money
  • A combination of the two

These are foolproof methods; however, not a single one of these will work if the money does not physically make it from your paycheck to your savings account…and stay there. This means that for you to increase your savings, you need to be an active participant. All three components to the saving equation are verbs that require action from you: you need to earn money, you need to spend money wisely, and you need to deposit the savings. It’s all up to you.

The series will begin with the story of my own personal finance journey to show you a bit more about myself, my background, and how I went from having $36,000 in student loan debt to enjoying a positive net worth less than 5 years later.

Please join me next week, and bring your friends!

Save Beyond Your Means Series:

Save Beyond Your Means Series Introduction
From a Pile of Debt to Net Worth Part I
From a Pile of Debt to Net Worth Part II
From a Pile of Debt to Net Worth Part III

7 comments… add one

  • Sandra

    Wow! I can’t wait. I try really hard about being prudent with expenses and lifestyle but somehow I feel like as hard as I try I don’t accomplish much.

  • When I first read the title I thought “maybe she meant ‘spend.'” Perhaps that’s a pretty good indication that we actually do spend way beyond our means…saving beyond your means sounds weird.
    JT McGee recently posted..Gaming Capital One Credit Cards 299 At a Time

    • Hi JT!

      Yes…most people spend beyond their means, and I want them to start saving beyond their means. To me, this means saving more money than their current income and expenditures should allow them to save. That’s where frugality comes in!

      Thanks for your comment.
      Amanda L. Grossman recently posted..A New Series- Save Beyond Your Means

  • Look forward to the new articles. Saving more is really like the inverse of losing weight: consume more calories than you take in.
    101 Centavos recently posted..Ragu’

  • I’m going for the combo option. I am trying to eat out less and I am doing lots of over time to earn more.

    I am also planning to try for a promotion sometime soon, that will help with the finances a lot.
    alex recently posted..Pension Calculator

  • Olivia

    Always looking forward to new ideas.

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