What Is The Secret To Saving Money? - Everyone is chasing the one money saving secret they need to create the world they desire. The problem lies in what we are chasing not the secrets we don’t know.
We are chasing that golden ticket, the magic secret that will get your rich when there isn’t one. A favorite book of mine is called “The Richest Man in Babylon”. It is a parable about the richest man in Babylon and how one day someone finally asked him the secret to making all his money.
What Is The Secret To Saving Money?
What makes the book so intriguing is not that it is full of exotic stories of trade, business and adventure, but a real story. One that anyone can related to. It is a working class story of grinding it out doing the right thing for yourself and your family everyday. Following this patter, he became the richest man in Babylon and so can you.
If you ever get the chance, pick up the book and read it, but be prepared for a mental shift. This is because if there ever was a secret to saving money, then it would lie in your mindset.
Many people are not predisposed to saving money. Most people are good at spending it, the easy one. Saving is the more difficult of the two, but the trait we all desire to master. And if we are going to accumulate the wealth we desire in our lifetime then this is a most important endeavor.
How to Save…
It is actually very simple. You have to spend less than you earn. I k now we can make this process sound difficult, but it really isn’t. I promise you if you spend less than you earn, then you will have money left month after month.
This is the basic truth in the book I spoke about earlier and every personal finance class you can find. You have to spend less than you earn. Getting in the mind set to trim the living expenses is where the best and brightest of the savings group work. It is the key.
You have to be willing to live the 70, 20, 10 budget. This is where you maintain a lifestyle where 70% of your income is spent on your living expenses like mortgage, food, car note, entertainment, clothes, everything you spend money on.
20% of your income goes towards debt reduction. You cannot properly save if you are in debt. You have to get out of this position as soon as possible.
10% goes to savings. The goal is to increase this number as high as you can take it. One way to get this done is to get out of debt. Once you are out of debt, don’t increase your living expenses. Increase your savings. At 30% savings per year, you will quickly begin to find the amount of money you earn rising faster and faster.
There you have it. A simple budget that can turn your life around and earn you the type of living you desire and deserve. - What Is The Secret To Saving Money?