I was told that money doesn’t grow on trees so I should be wise in spending hard-earned money. There was a time when I didn’t care about saving and spent each dime I received as soon I got it. I used to tell myself I deserve to splurge and indulge and “pay” myself for a job well done. Unfortunately, it caught up on me and I was up to my ears in debt in no time. I find it a blessing that I was able to have a clean slot after paying it all off, but it still is a very hard lesson for me to learn.
We are really in the age of consumerism. Personal savings rates have dropped in recent years and remain low by historical standards as many people continue to spend beyond their means. So you better take down a budget for each month. The first element of any budget is your income, or how much money you receive each month. Next, you need to know how you spend your money. Start by tracking your spending for a month. Gather bills and receipts, and don’t forget to include newspapers from the corner store and trips to the soda machine. Write down your expenses and break them into categories. From there you can see how much money comes in and out.

One basic principle: Less Spending = More Saving. Before you fully understand the operations on options trading you need to understand this very basic principle. Think one hundred times before you buy something. Is it something I need or just want? If I need it, do I need it right now? Or a later time will be better?

Living simply is a habit you can get used to if you just track your spending. You will be surprised, amazed and even embarrassed when you write down everything in paper. And you will realize, money doesn’t grow on trees.