most people feel you need a big income in order to save money this is further from the truth.
How many times have you heard these lines? I don't make enough money to save. My bills are too high for me to save any money. Well, today we are going to expose these common two lies, you tell yourself. Many of our readers will not agree with this blog. While others of our readers will say they just can't change, it's not that simple. There are a small few that will make the changes needed to save money. Hopefully, you are one of those people so, let's dive right in. "How to save money with what you make now"?
What Is Compound interest and how does it works?
The first step is not to waste the money you make.
A common misconception people always feel you need to make a lot of money to save or become rich. When the fact is it's not how much you make, it's how you spend it. The key is to pay yourself first. Now it's time to do the math on this easy equation, and you will see what I'm talking about. There are 52 weeks in a year. You earn $1000.00 a week. You put 10% to the side each week. That is a total of only $100.00 a week. Which is $5000.00 a year times 10 years equals $50,000.00. That is exactly what your job does with a 401k plan or your pension. Learn to mind your own business.
The Second Step Is Learning The Different From Needs And Wants.
In today's society, people spend their money accordingly on what other people feel that should have. Too many times, we witness people driving expensive cars and living in luxury homes. Do you think they sat down and did the math on the actual cost? Not just the monthly payments but the day to day expenses needed to maintain it. you need to ask yourself, does that car get you to point a to b any better than the least expensive vehicle? The answer is usually "I just want the car to look like I'm doing well in life." When you buy something that doesn't produce revenue then you are wasting money. We get caught up with "I have to have that now" mentality. You don't need to get your hair done every week unless you do it yourself. You don't need to have every outfit match down to the socks just to go to work. Every morning you walk out the door and buy a coffee or breakfast is money that could have been part of your savings. When the weather is bad or you are running late is not an excuse to use a car service. when you are invited to attend an event doesn't mean you need to but a new outfit. When your income increase your bills should stay the same. Did you notice when you get a rise your house or apartment gets bigger, you often trade your car in for the latest model? Going out to dinner used to be Midnight Express or PeeDee's Steakhouse now it Ruth Chris or Peter Luger $200.-$300. a plate. The bottom line is these are wants in life. You could do better without adding on these extra costs. Every dime you spend on bull crap could be money used for saving and investing. So the next time you claim you don't have enough to save just look at what you spent it on.
Here are three books we think you should read.
1. The Richest Man in Babylon
2. The Millionaire next door
3. Rich Dad Poor Dad
Today's call of action is to let us know did this blog help? Did you learn any saving tips that you will use? Tell us a story about when you decided to start investing in your future.
What To Do Entertainment (Logo)