Living from pay cheque to pay cheque is the wrong lifestyle to adopt. Financial experts advise that we set money aside in form savings. This could serve for the rainy days or as emergency funds. More so, saving money also contributes to a person’s net worth.
The art of saving is a habit that can only be achieved with discipline, focus and consistency. Borrowing from renowned author, Brian Tracy’s nuggets , these are 4 laws of saving to abide by:
1. Start with yourself
Begin today to save ten percent of your earnings. This money is untouchable and should be reserved for long term financial accumulation. You never take from it except to assure your financial future.
2. Develop new habits regarding money
Develop new habits regarding money. After paying yourself first, force yourself to live on the remaining ninety percent until you become used to it.
3. Take every advantage
Take advantage of tax deferred savings and investment plans. Money that is saved or invested without being taxed accumulates at a rate of 30% to 40% faster than money that is subject to taxation. Invest in company pension and retirement plan, education investment accounts, stock options programs and every other plan to meet your long term financial goal.
4. Action exercises
You need to do these two things to apply this law immediately:
First, begin today to put away ten percent of your earnings. Set up a special account for this purpose and treat your contributions to this account with the same respect that you do your rent or mortgage payments each month.
Second, become a lifelong student of money. Read the best books, take courses and subscribe to the most helpful magazines. Know what you are doing so you can always make intelligent decisions when you invest your funds.