Spend Smart & Save More

The only way to create long-lasting financial security and erase money stress is to depend on yourself. Don’t count on the stock market or money from the government, and especially don’t rely on advice and guidance from the Financial Services Industry or the majority of the financial media. With rare exception their advice and guidance has devastated the finances of most Americans over the last 10-15 years.

Millions of people like me, however, never bought into this destructive financial system and advice. We just kept on doing what works and avoided losing money when so many were losing their life savings.

Over the years we've found that one of the most important things to do is to spend smart—really smart. The old adage that "it's not how much you make, but what you do with it that counts" is very true.

You may well think that you already know how to spend smart. I thought I did too, until I spent 3 years doing the research for this Money Smart project, picking the brains of the insiders in industry after industry. I can't tell you how many times I was surprised to learn that I had left a lot of money on the table. Forced to support myself other than food and a roof over my head since I was 9, I’ve had 63 years of business building, investment and financial success. I thought I pretty much knew it all. Well I didn't. I was pleased to learn even more about spending smart.

None of us knows it all, and small bad habits can really add up over time.

To get you started, here are some key smart spending strategies to help you save thousands each year on the things you already pay for and to help you save 15% to 20% of your money. Saving 15-20% is a very achievable goal for most people, and a cornerstone for insuring you achieve financial security and that you get to live the life you wish. 15-20% may sound high, but using the tools within Money Smart makes it doable. All you have to do is to be open-minded and willing to make some small changes. Millions of people have done these things and unless you're facing some really bad immediate financial problems, you can too.

The benefits are huge. The average family income these days is around $60,000. 10%, or $6,000 saved from your pay is really $9,000 if you put it directly into a tax protected account instead of spending it. $9,000 a year invested at a return of 6% a year (historical returns have been more like 8%) will give you $123,000 in 10 years, $346,000 in 20 years. Think of the freedom and security that kind of money can buy!

As you proceed, never doubt that you can succeed when it comes to managing your money. What you'll find is that it's really quite straightforward. Just go do what works and never stop believing in yourself.

There are many ways to spend smart and I’ve written about many of them throughout this site and my blog.

Here are some more favorites:

Always ask for a better price

What Most People Won’t Do to Save Money

Money Smart Radio April 21, 2012

Buy from the right places

Money Smart Radio April 28, 2012

Always have and use a written list

Did I Really Want That? Why We Buy What We Don’t Need

Create and follow a spending and saving plan

Spending and Saving Plan Help

Prioritizing Your Savings