Saving Equals Wealth
It seems that saving money is just no longer in fashion these days! And yet true wealth is created through diligent saving habits.
Wealth is the number of days forward that you can live without working – Buckminster Fuller.
By not exercising good saving habits, you jeopardize your financial independence which, in turn, will make personal freedom and your ability to choose virtually impossible.
According to various national surveys an average person in the United States saves only about 3% of their income and 80% of Americans have no money put away for when they retire! Most average 50 year old people have only $2,000 ear-marked for “retirement”. These statistics are startling and the trend is getting worse, not better.
There are a lot of people that make “great money”, but have no savings. How can people have no money left to show for all their hard work and effort? The answer is simple… they spend it. They are living a high-end lifestyle which in most cases they will not be able to sustain.
Spending is the enemy of Saving
Spending money is like stealing from your potential savings. This seems like common sense but it is surprising how many people really do not understand this concept.
Savings can and must happen at many levels. The most obvious is saving part of your income from your “Make Money” activities. This is where you really have to know your true financial picture and must know exactly how much you can save and how you are saving, if any at all. We recommend that you save 15% of your gross income on a consistent basis.
However, you must also think about saving in other ways. For example, picking up a pizza rather than ordering delivery saves you on average of $5. Buying a used car versus brand new saves you thousands of dollars depending on the make and the model.
Saving Money Habits
There are 3 habits that you should master when it comes to saving money: -
- Life Style versus Wealth Creation.
- Pay Yourself First.
- Be Disciplined.
At the end of the day, while making money is important, it is how much you save that really matters. Short of winning a lottery ticket, only good saving habits will create true wealth for you.
Start saving today and save on a consistent basis. This is the basis of extraordinary wealth.