How Do You Save Money?

Look after the pennies and the pounds will look after themselvesI was recently asked how do you save money when there is nothing left at the end of the month once the bills are paid and the groceries purchased.

Do Not Save Money – Build Wealth

As with so many things our attitude about what we want to achieve plays a very large role in achieving it. If we see savings as simply saving we tend to see it as a negative thing. We are denying ourselves the ability to spend some money so we can save it.

Once we save it then what? It sits in a savings account where in today’s market it earns no interest and loses value because of inflation. That is not very exciting and may not even be very smart.

Look at it as though you are building wealth and it becomes a different thing. Your mindset is different. You are building something of value for the future. That is something you can get motivated about.

Living Below Your Means

The first step in building wealth is living below your means. Most people live at their means or above it. Living at your means and you spend every dollar you earn each month. Living above your means is spending all you earn and going into debt as well.

No one ever built wealth living at or above their means. To build wealth you must live below your means – you must spend less each month than you earn and save the difference. It is that simple, but it is not always that easy.

To live below your means you must make a budget and stick to it. The budget must be designed to spend less than you earn, even if it is only $10 a month less than you earn. You must look at all your discretionary spending and find ways to reduce it. You must tighten your belt. There is some sacrifice here for sure, but remind yourself that you are building wealth and this has a cost.

Automatic Savings

Once you know how much you can avoid spending each month set up an automatic savings system so you need not even think about it. You can create an automatic deposit of part of your paycheck through your employer or an automatic transfer from your checking account into a savings account each month. You pay yourself first, and you spend out of what is left.

At least once a quarter you examine your spending and find other ways to reduce it so you can increase your automatic savings.

Don’t Just Save – Invest

Once your savings builds up some find a safe long term way to invest that savings. Put your money somewhere it can grow, not just into a savings account.

Once you establish this system and stick to it your wealth will grow. It will be very slow at first but over time you will be surprised how much wealth you can build.

Learn more about financial success in my book Your Financial Success. 


The purpose of this blog is to help you succeed. I need to know what you need in order to succeed. I am asking you to please let me know what you need. What questions do you have about success, creating and managing wealth, leadership skills, personal development and time management?

You can ask me these questions two ways. If you do not mind doing so publically just post a comment to this post with your questions. If you wish to do so privately then go to my contact page at: and send me a private message with your question or questions. I will respond to you privately and will not make your questions public unless you allow me to.

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.