Best Ways To Save Money
Having you been searching for the best way to save money?
Many year ago, a man named Clason wrote a book called The Richest Man in Babylon. This book became a worldwide bestseller, sold millions and millions of copies in every language, and it has one basic principle in the book, which is not very large, which says: pay yourself first. Resolve today that you are going to save and invest at least 10% of your income throughout your working life. Take 10% of your income of the top of your paycheck each time you receive one. Pay yourself first and put it into a special account for financial accumulation. The fact is that if you save just $100 per month throughout your working lifetime, and you invest that money in an average mutual fund that grows at 8-10% per annum, you will be worth more than one million dollars by the time you retire.
My good friend, David Bach, wrote a book which said that, if you simply spend 1 latte less, $5 a day, and you call it the latte factor, and save that money – $25 a week – you’ll save $100 a month and you’ll become financially independent. He’s been on half the television shows in America, explaining that by saving a few dollars each day and saving it, you can achieve all your financial goals. What this means, is that anyone, even a person earning minimum wage, if he or she starts earning enough and saves long enough, can become a millionaire over the course of his or her working lifetime, and that includes you.
Developing a lifelong habit of saving and investing your money is not easy. It requires tremendous determination and willpower. You have to set it down as a goal, you have to write it out, you have to make a plan, and you have to work on it all the time. But once this practice locks in and becomes automatic, your financial success is virtually guaranteed. The key for you is to practice frugality, frugality, frugality in all things. Be very careful with every penny, especially at the beginning of your working life. Question every expenditure. Delay or defer important buying decisions for at least a week, if not a month. The longer you put off making a buying decision, the better your decision will be and the better price you will get at that time.
A major reason that people retire poor is because of impulsive buying. They see something they like and they buy it with very little thought. They become victims of what is called Parkinson’s Law, which says that expenses rise to meet income. This means that no matter how much you earn, you tend to spend that much and a little bit more besides. As a result, you never get ahead and you never get out of debt. Your job is to break Parkinson’s Law. You don’t have to be a victim of Parkinson’s Law, but if you cannot save 10% of your income, start today by saving 1% of your income in a special savings and investment account. Put it away at the beginning of each month, even before you begin paying down your debts. Learn to live on the other 99% of your income. As you become comfortable living on 99%, raise your savings goal to 2% and live on 98%, then 3% and 4% and so on.
Wow, within one year, you’ll be saving 10% and maybe even 15 or 20% of your income, and living comfortably off the balance. At the same time, your savings and investment account will start to grow. You’ll become more careful about your expenditures, and in a miraculous way, your debts will begin to be paid off one after the other. Within a year of starting saving 1% a month, your entire financial life will be under your control, and you will be on your way to becoming a self-made millionaire.
Now, this process has worked for everyone, including tens of millions of people who read and applied the idea from Clason’s Richest Man in Babylon. Try it for yourself. Open a special account for financial accumulation today. Make a deposit in the account, even 5 or $10, no matter how small. This starts to set up a force field of energy that will attract more money. Then, look for every opportunity to add to this account. Begin to study money, so that you understand how to make it grow. Read books and magazines by experts on the subject of money. Never stop saving and learning and growing, until you become financially independent.
I hope you enjoyed this article.