Why Saving Money Doesn’t Actually Make You Rich We all want to become rich. But if you’re living paycheck to paycheck, carrying debt or fighting with your partner over money, it’s probably not going to happen any time soon. The key to gaining control of your finances is taking the initiative to change unconscious spending habits. Start by tracking your spending using a pencil and paper, spreadsheet or a free mobile or online spending tracker.
Is it even worth saving money?
Once you’ve figured out how much you spend, decide what portion of your income will be devoted to savings and make it a priority in your budget. You might also consider reducing your expenses by eliminating subscriptions that you don’t use or aren’t reading anymore, such as magazines, streaming services and online memberships.
Once you’ve mastered the habit of saving, you can focus on increasing your income. This might mean negotiating a raise, getting a side hustle or creating streams of passive income. Increasing your income and putting the extra funds to work through smart investments can help you achieve your wealth goals faster.
Inflation will cause the value of your savings to depreciate over time. To avoid this, consider investing in index funds that will give you a return on the market without the risk of losing your original principal.