Spender to Saver in 4 Easy Steps

“A penny saved is a penny earned” is a quote more preached than practiced.
This article intends to not only help you release your old habits of overspending, but to build new habits that help you save money consistently. Our spending habits were not formed in one day, and they aren’t likely to be changed soon either. But with dedication, consistency, discipline and self-regulation you can succeed in saving money. And by following these simple steps, you’re about to become richer!

Step 1 . Pay yourself first

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The financial equation which we are taught from our childhood is Income – Expenses = Savings. We pay all our bills, incur all luxuries expenses first and whatever is left goes for savings. However legendary investor Warren Buffett offers a simple solution. He says the equation should be changed to Income – Savings = Expenses. That is we need to pay our self first (SAVE) before paying any outsider bills.
As soon as the income is received it should be automated to investments like Starting a Mutual fund Systematic Investment Plan.

Step 2. Avoid plastic money

Avoid Plastic Money

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Credit cards and debit cards have become integral part of our fast life. However this can be dangerous if you are a spender.  To suppress the spender in us we can avoid using the cards for shopping. The best thing to start with is leave the Credit and debit cards at home and carry cash for shopping.

Step 3. Avoid peer pressure

Avoid Peer Pressure


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In today’s materialistic world, everyone is running for status. Many follow their friends, neighbors or colleagues when it comes to buying lavish items. Every person has a different financial condition and different priorities in life. One needs to access the need and importance of that particular item before splurging money by following peers.

Step 4. Budget your spending

Make a Budget


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This is a golden rule for savings since good old days. We need to fix a budget for all kind of expenses that we incur, may that be of routine nature or entertainment or luxuries ones. Sticking to the budget is also the most important part. We may put aside cash for different types of expenses at the start of the month and need to use the same till month ends. This will ensure that we don’t go overboard on our expenses.

So, are you ready to become a Saver from a Spender?