Saving money can be an incredible feat for many people. Our lives are full of enticing clothes, cool gadgets and fancy cars. Many will be eager to own them, giving them the gratification and social status. However, when looking at savings or cashflows, you will find many of them are in debt and no savings at all. Many of my friends are like that, they own cars, wear branded luxury clothes, own several designers bags and even multiple colors of similar bags! And they have told me that they have no extra money for their saving accounts. To start saving, you will need to develop habits that will help you reach your financial goals.
Savings are not for people who are poor and had a hard time earning money. Look at the tycoons around the world and you will see many of them are actually super savers. I had two friends who are pretty wealthy, but they had different spending habits. One managed to get a good sum of money and bought himself a $250,000 BMW Z4 Roadster, and I asked him why. “I like sports car and I got it since I can afford it”. Around the same time, the other friend of mine got the same amount of money, but instead of spending it immediately, he invested it in something else. After a few years, he is driving a Lamborghini! “I liked the BMW Z4, but if I can wait for a while and leverage my cash abit, I can actually own Lamborghini in a few years time.” The best thing is he can still easily afford another BMW Z4 if he wanted to!
See the difference? Being wealthy and rich is not about earning big bucks, it is the wisdom of using your money well. Saving money is one of the first few steps to financial wisdom. Here are some ways you can learn from the super savers:
Delayed Gratification.
Super savers do not believe in buying something when they decided to. Things that cost a huge sum of money need careful planning and many will save up so that they can pay upfront and avoid interest charges. Delaying your purchases also give you time to “cool down” and consider whether you really need item or not.
Cut your expenses.
Reduce your expenses equals saving more money. There are many ways to reduce your expenses. So take some time and sit down to review through your monthly expenses. Find things that are you don’t really “need” and stop any expenses on such things. Spend only on essentials and turn your expenses into fruitful investments.
Create budgets.
Super savers are really good at setting up budgets for themselves. Start planning your budget by tracking expenses and incomes in a month and categorize them into logical categories like groceries, entertainment etc. Know how much to assign to and spend within the limits. Excess cash should go to the saving accounts and not to other budgets. Again, budgets have to be in fine details, so that you get the most of out it.
Research your purchases.
Don’t buy on first sight when you have plans to buy something. Always do some research, by going to several shopping malls or online and compare prices. Consider the quality and price that will suit your needs and last you for a long period of time. Such great deals will help you to cut away some cash for savings.
Set financial goals.
Goal setting is a MUST for any successful individuals. You will not achieve anything if you don’t have specific goals. Super savers sets very detailed goals and work hard to achieve them.Start by eliminating your debts, set firm deadlines and work towards them.
Respect your savings account.
Your saving account is not your cash cow! Don’t let it be something that you can raid it or empty it for some unnecessary purchase. If you are saving up for a house, you should not be using the funds to buy a new car! Dedicate your savings to a particular purpose and develop some discipline on how you use the money.
Related Resources:
- The Richest Man in Babylon: George S. Clason's Bestselling Guide to Financial Success: Saving Money and Putting it to Work for You
- Awaken the Giant Within : How to Take Immediate Control of Your Mental, Emotional, Physical and Financial Destiny!
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