We all know that having financial freedom is probably the best way to live. But that can only happen after you get rid of all those hefty mortgages, loans, etc. And whether you know it or not, millionaires, even billionaires save money. The only difference between you and them, is the way they save money. You see, those people have a habit of saving money, and they do it in such a way that doesn’t force them to cut their luxuries and other things that they think is important in their life.

Saving is something that should be well thought-out, and considered as a long term thing, because you will probably be saving money your whole life. And to make that happen, you will have to understand your spending habits. Evaluate those habits, and focus on things that force you to spend more than you actually earn. And that is the main reason why we all are here.

But those evaluations are not the only thing that you will need. Here are some tips that will help you ease the process of saving money in the long term.

A Goal In A Mind Is 50% of Savings

Most people would say that you should start saving whether you have a goal or not. But I don’t agree with that, because if there is no goal, then you actually don’t need to save money. So make sure that you are having a goal that you cannot afford right now (even if you go over your credit limits).

This goal/vision will push you to save those bucks to afford your goal in the future. And it doesn’t matter if your goals change, you will still have the money to afford them. And if you are someone like me who has many different goals, start with one small goal that won’t take your arm to afford it. Once you accomplish that little goal, it will further encourage you to accomplish other goals.

Cash Reserves

This is most important, because life is a huge story that cannot be predicted. You should be having 2 cash reserve that you don’t touch (partially). The first cash reserve should be for small things, or I should say damages that happen to you. For instance, if your car breaks down, or if your pipe bursts, or anything. You should use this first cash reserve to spend on that.

The second cash reserve should be in an extreme emergency. In this reserve you should save at least 6 months of expense, and make sure that you never touch it unless you are in an extreme emergency where you are left with nothing but your clothes.

Little Things Matter The Most

This is just a cent, or a dollar. You need to take those thoughts out of your head. If it is money that can be spent, then it is absolutely worth something, and it could benefit you in any way. So make sure that you save that dollar. It doesn’t matter if you are saving just a dollar per day. You will be saving $365 per year, which could be used to purchase your new smart phone. Think of it that way.

And here’s another special tip for iPhone users. When a new iPhone comes out, you don’t have to pay the whole price upfront. You can purchase that phone for a contract of 2 years. So why not save that money every year, so that it becomes much easier for you to purchase that latest iPhone, while everyone else would be waiting to save after the launch?

But remember, you should first focus on clearing your debt first, and then saving money in those cash reserves and for that iPhone. Budgeting your monthly expenses is another better way to save more money. But that can only happen if you are disciplined, and committed.