Money Saving Habits , Pay Yourself First
May 15, 2009 by admin · Leave a Comment
What if I asked a few questions? Are you saving money? If so, how much are you saving? Saving money is one of those tasks that are so much easier said than done. Saving money is a necessary requirement for building wealth. Don’t misunderstand; saving money is not the same thing as investing. Saving money is only really effective when you are saving it for a purpose. So how do you save money ?
Pay Yourself First
As a young man I had a conversation with and older wiser and I might add wealthy man who told me I should pay myself first. I thought that was an interesting concept but I did not come anywhere close to doing as he had said. Whether you get paid on the first of the month, weekly , or twice a month, make the fiorst check you write to yourself. Before anyone out there start howling about how they barley have enough money to pay the bills they have , let alone pay themselves, stop it. If you can only afford 5% of you gross income, write that check first. We will talk about how to increase the amounts later.
Put Your Savings In A Safe Place
Im not only talking about keeping in a bank or safety deposit box, I am referring to keeping it away from you, If you have never saved money before this process will not be easy for you. An account that requires a waiting period to make a withdrawal will help deter you from robbing the piggy bank.
How Much Money To Save
Financial experts often recommend having enough money in an emergency fund to cover at least 3 to 6 months worth of household expenses). Sound impossible? It really is not once you commit to the savings plan. Remember this is a savings account, reserved for unforeseen expenses, job loss, and so on. Unemployment is going to reach 10% this year. How many of those people do you think wished they had saved money?
