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For many individuals, the idea of savings is often associated with pain and a diminished lifestyle. In fact, many people automatically associate savings with living poorly. 

Yet, the reality is that you do not necessarily have to live like a pauper just to save a little. It’s just money lies that people tell themselves. If you do it correctly, you could actually live a pretty good life whilst building up a sizable nest egg. 

But to achieve this beautiful balance, you’ll need to be strategic with your savings. Here are a few tips that will help you get started.

Track Every Expense for 1 Month

To find out where your money goes, you need to do an expenditure audit. You’ll have to intentionally track and monitor where every cent goes. So, for the next month, have a notepad or an Excel spreadsheet on your phone, and note down every expense you make over the course of the month. 

If that seems like a lot, put all your expenses on one card for the month. Always pay for every item you buy with that card. Then, look at the statement and expense report after 30 days. 

This is a practical way to see where your money is going. Once that’s done, figure out the things that were necessary and those that weren’t. Resolve to eliminate the unnecessary expense the next month and stick to that resolution.  

Set Up a Budget 

When people hear the word budget, they naturally assume that they are about to lose their freedoms. This is not surprising seeing as there’s a considerably negative association with the term. 

But, you need to get past that and instead see budgeting as a way to get in control of your money. Budgeting is how you actually exercise some self-control over yourself and your money. It’s you saying this is how much I’m going to spend this month, and nothing more. 

Just make sure that it’s not too restrictive –you want to save money; not spend too much time worrying about your next meal. 

Look for Cheaper Offers

Those expensive items you like can be bought for cheaper if you’re willing to look for deals or wait a little longer. This applies to everything from your clothing to your lifestyle. 

For example, if you want to learn how to sing, you can either go pay hundreds of dollars for training or just look for cheaper options that work just as well. 

For instance, instead of buying that brand new vehicle, wait a couple of years longer, and you’ll be able to get it for cheaper –sometimes as low as 40 percent less. If you’re willing to wait a lot longer, you will get them for even less. 

Avoid Lifestyle Creep

It’s easy to want to splurge or buy yourself something extravagant when you get a pay raise, a commission, a bonus, or some free money that you didn’t anticipate. 

Don’t be that person. Instead, put that extra money away for the rainy days. This is easy to do if you have optimized your spending habits and mastered your budgeting abilities as mentioned earlier.