Personal Development
Essentials

Saving Money

The most important rule for money is to save. Save Save Save, you cannot expect to make money and be financially independent unless you can discipline yourself to save money. Saving money is a discipline and as a discipline it affects all other disciplines in life. You need to be disciplined to stop yourself spending money on things that you do not need and will not use. A person who cannot save money will never become financially free. A principle with regard to saving your money is the law of attraction. The law of attraction works with money like everything else, but has a much stronger affect with the more money saved. The more money you have the more money is attracted to you, much like a magnet attracts metal, the more you have the more is drawn towards you.  

The best thing you can do is to open a savings account, a brand new one, and start depositing money into it. Don’t touch that money, just keep adding money to it as often as you can, even if it’s just small amounts, keep adding to it. The more you do this the more money you will bring into your life and the quicker it will come. The law of attraction states this. You will attract money to you from sources you didn’t realize were possible before you started and you will be amazed at where the money has come from. Sadly if you don’t do this and don’t take this advice, nothing will happen, you will not kick-in the law of attraction and you will never be financially independent.  

The next step is to start saving on a regular basis. The brightest people always save at least 10% of their income, Imagine saving 10% of your income each month, over time those savings will accrue into a very large some, and as we know the bigger the pot gets the more money it attracts into it. The most important thing is to never touch these savings, if you can discipline yourself to not dip into them you will be in to top few percent of people who are becoming financially free. Everyone lives to their income, and when you decide to save 10% of your money, you will soon get used to living to what is effectively 90% of your income.  

An important thing is also to ensure your savings account has the best interest rate you can find and is tax free. These accounts often have restrictions applying to them that penalize you if you take money out within a certain period of time. This is exactly the account you need.  

We must break away from the norm and not do what everyone else does. Parkinson’s law states that no matter how much money people earn they tend to spend it all, and some more. People’s outgoings rise with their earnings. Most of us earn much more than we did when we started out working in our first jobs, but isn’t it strange that today, as then, we never seem to have enough money to spend. This is because the more money with have the more money we spend. It is the main reason we get into debt. If we disciplined ourselves to spend a little less than we earn, we will be on the road to financial success and be ahead of everyone else. What we all need to do is to allow our spending to move at a slower rate than our earnings, we will then become financially free.

The easiest thing to do is to save at least half of any pay rise you receive. If you receive an extra 1000 on your salary per year, save half of it. Add this to your 10%. This is new money that you may have worked hard for, but you will not miss because you’ve never had it. Save half of it. This together with saving 10% of everything we earn will draw more and more money into our lives. Don’t believe me, try it for a few months and see for yourself.  

It’s important to remember the role of compound interest on your savings, especially when you are tempted to dip into your savings pot. Remember don’t touch your savings, keep putting them in. You can work out how long it takes for your money to double in value by calculating its current interest rate and dividing it by 72. If the interest rate is 8%, it will take 9 years for your money to double. 72/8=9. This might sound like a long time to double your money, but of course saving 10% over the course of those years will see your money double several times over.  

 

Good luck and keep saving.

 

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