Placing a Value on Your Savings

When you start to learn how to save your money, you feel good.  In fact, you can feel really good.  But sometimes, it is hard to actually measure the savings you are achieving. 

I actually keep a spreadsheet and I record my savings.   When I can take a quick look and see how much I have saved all year long (by store), it keeps me motivated.  There is something about watching it grow into the thousands of dollars.

It can be hard to actually see your savings when you get a good deal.  A great way to motentize it, is to put it into a savings account.  For instance, if you save $45.00 at your favorite retail store, don't just shout "WOO HOO - I saved $45.00!!"  Instead, take that $45.00 you would have spent and transfer it into a savings account.  Not only will you see your savings increase (rather quickly), you will feel great watching it continually rise.

Since my family sticks with a cash budget, we actually take all of the cash left over in groceries and other bi-weekly envelopes and place it into a larger envelope.  We then save this to make purchases for our home.  In fact, we have saved enough so far during 2010, that we are going to be able to purchase a new HDTV and stand -- within the next couple of weeks!

Of course, for many families, not being able to physically save the money in an account or envelope is a harsh reality.  It is a matter of doing what can be done to just to get by.  And you know what - that is OK too!  No one says you have to physically account for the money you save at the store.  Knowing that your grocery bill has been reduced by 25% is enough to bring a smile to your face.

Whether you decide to actually account for your savings, or even just pat yourself on the back for spending less than you have before, it's up to you.  It is just about trying to save money on your purchases.  I always say it isn't what you spend - it's what you keep!