They say that a penny saved is a penny earned. Some don’t consider saving because they are financially able, but saving is not about the lack of financial ability. It is more on paying yourself.
We do work to earn a living. Many of us earn more than enough a living and yet have a very little amount in their savings account. This is because they are living the money they earn – too much! Well, it’s not bad to spend your money. But isn’t it wise to save a little.
Who wants to be a millionaire? Almost all of us do, but very few of are doing something to pursue this dream. Well, some are keep on playing lottery, joining game shows on noon time televisions but none of these can surely turn you into a millionaire – not even working so hard. Why? Because the more you earn, the more chances of spending (just like in raffle draws: the more entry the more chances of winning). Studies have shown that when someone’s salary increases, his “wants” also increases. This is the reason why earning more money will not make you into a millionaire.
The Millionaire’s Secret
The key to be a millionaire is not to earn from your work but instead to earn from your earnings – saving. Saving is a tough word. It is not as easy as it seems to be. You surely tried saying to yourself that you are going to save a portion of your salary to your savings account or in a piggy bank but end up spending it all in taxes, bills, debts (well, if you want to save, you should be free from any debts) and shopping.
The secret of a successful saving is that you save first then you spend. We usually do spending first then saving what is left after we paying everything. But the problem is – there’s never an excess. Why not save first, then pay everything (taxes and bills), then go shopping for necessary goods.
You can start in any amount you think you can. For example, $25 for every paycheck you get, if you are earning twice a month that was $50 per month and $600 a year. Small amount at first look but it’s better than the old ways when you have zero.
Do the Math
About the millionaire thing, this one needs a lot more discipline. Imagine putting $100 in your savings account weekly or $200 for bi-weekly paychecks. That was $400 a month, $4,800 a year and if someone does this continuously for a lifetime (from his 25 to his retirement age of 65) in an average 7% interest from the bank, he will get roughly a million dollars (you do the math).
Another good thing about saving is when you became used of saving first; you don’t mind the amount you are paying to yourself. Small amount at first but if you look at the larger picture, you will say that saving is really very large thing. And now that you know about these things, you surely wished you were 25 again.