We all make money.
Some of us more, some – less…
Some of us do it working full-time five days a week, some – occasionally…
Some of us consider it enough for our lives, some – constantly suffer from its deficit…
What makes a person think that he/she has got enough?
- The most common answer would be “the amount of money earned”. We would strongly disagree with this way of thinking.
You can make millions but have few cents in your pockets.
How? The world gives us so many opportunities to spend huge sums (gambling, luxury, traveling…). It’s fine if one does it seldom, just to relax or have fun. Of course, if you have enough of funds…
But “relaxation” and “fun” shouldn’t come before your primary needs – food and shelter.
The simplest path that will lead you to financial freedom is start saving.
What is Saving?
Webster dictionary defines the verb “save” as “to put aside as a store or reserve : ACCUMULATE”.
It’s not about pinching every penny. It’s about learning to respect money and money will respect you.
Here are a few tips that will help you make up your mind:
1. Do not spend your cash on what you do not really need. Just think of yourself going shopping to Wal-Mart. All retail chains use this trick placing all goods in specified places so you buy as many of them as possible. How many useless things you buy every time that would keep on lying in your house and never be utilized?
2. Start SAVING yourself. At least 10% of monthly income needs to be placed aside. 10% is something you can “touch” and, on the other hand, will not make your pocket empty.
3. Teach your family members to do the same. Even your children need to know the cost of money. It will help them in the future. No doubt!
4. Keep accurate records of your spending. At first it will seem very hard to write down every spending you do, but in the future it will be performed automatically in your head.
5. Pay off all your credits and get rid of your credit cards. Use cash or debit cards without overdraft instead.
6. Start investing your savings. Retirement plans, mutual funds, deposit accounts, stocks, bonds, etc. help your budget grow. Keeping your money under pillow will diminish the amount “thanks” to inflation.
7. Practice, practice, practice! Repetitio est mater studiorum!
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