Saving and investing doesn't have to be complicated. The point of investing and saving your money is to provide security for you and your family and that is important, but you don't have to see every downswing or increase a feast or famine situation.
Stop Consuming As Much
Financial freedom is knowing you have the money to pay for a very few financial obligations (a low interest mortgage or student loan for example), money to save for your future and the future of your children, money to invest to build wealth, and having the ability to plan for life's events. Too many people fall into the trap of borrowing to make ends meet, and then are forced to use their current income to pay for past expenses.
Financial freedom comes from making responsible decisions about your money and keeping your expenses below your means. For some people, it takes a completely new attitude toward money and for others who have been doing this all along, it may mean it's time to step up your saving and investing strategies to make better use of the money you're earning.
Just as you can fund your checking or savings accounts with automatic deposits and direct deposits from your employer, most brokerage firms allow you to make regular contributions to your investments through electronic transfers out of your checking or savings account. You don't miss the money as much when it happens week after week without any action needed. If you are part of an employer-sponsored retirement plan, you may also want to consider joining and using automatic withdrawals from your paycheck into the plan.
In order to become good at anything, you have to learn the details of “how” to do it. Investing is no different. There are hundreds of thousands of financial books and magazines available to help people learn more about how investing works and how to grow your money. A few hours a week of reading and studying can make a huge impact on the amount you're able to grow your wealth.
Just because you've learned how to reduce your household expenses and save your money doesn't mean you can't reward yourself from time to time. The money you save and invest will be financially rewarding for you in the future, but you still have to enjoy life now, too. Give yourself a luxury whenever you have reached a financial goal, or plan a vacation once your savings account has reached a certain dollar amount. Rewards that are earned from accomplishments mean more than just taking yourself out on a weekly shopping spree to use up some of your disposable income.