How I did it: First I got a job where I make more than my absolutely necessary to survive. Then I did not let the law of expansion affect me. Most people live at the very top of your means. You make (x) amount of money. So this allows you to pay for (a) amount of bills, (b) amount of partying, (c) amount of food, and (d) amount of money for shopping, (clothes, movies, electronics, etc.).

a+b+c+d is usually equal to or greater than x. Ergo when anything unexpected happens. (Car trouble, or a friend's birthday.) you spend into reserves, or you spend money from fund (c) and do not have any food except for ramen. Or you spend money from all three and you can't hang out with friends, have no money to relax or enjoy yourself.

All I did was budget my income, (x) and made sure a+b+c+d was less than it. I don't make an extraordinary amount of money. But I do manage it well. Thus I am now able to save on average $100 a week.

Lessons & tips: See "How I did it" section. But simply, spend less than you make. Also, be completely honest with yourself as to how much you actually make. Many people skew the amount of money they make. (Even inside their own heads.) So they are continually living above their means. This is how credit card debt occurs many times. People lie to themselves and say they have the resources to pay for a new living room set. And then life happens, and you end up filing for bankruptcy.

Resources: Pencil, Paper, Self-Discipline, and an incredible amount of self-honesty.

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Dec 12, 2009, 04:56PM PST | 0 comments | 1 cheer