|
Last Updated: Feb 6, 2017 - 2:32:04 PM |
Like most persons, one of the things you may find frustrating is how to save money. So I am going to share with you the best personal finance advice on how to save money. And it is simpler than you think!
While you may feel that the key to saving is simply earning more money,
the truth of the matter is no matter how much money you earn if you are not doing this one simple thing then you will never be able to save money.
Personal finance and saving money is all about spending less than you earn. And that is the struggle for most persons ensuring that they spent less money than they actually earn. The key reason for this is no matter how much money you earn your spending always rises to the level of your income.
Think about that for a moment. You would have gotten a number of pay increases over your working life, yet you still find yourself wishing for more money so that you can save.
It is not more money that you need to start saving. What you really need is a way to spend less than you earn.
How to save money?
Just spend less than you earn and the secret to spending less than you earn is actually having a spending plan.
Think about it most persons have no idea of how they are spending their money. All because they do not have a plan for spending their money. So the key to saving money is insure that you have a plan that sets out exactly how you spend your money each and every pay.
As your spending plan will allow you to see how each dollar is being spent. Never forget that the key to saving money is knowing how you are spending each and every dollar.
But it gets even simpler than this because I feel that if you are ever going to achieve real success at saving money, then you must develop a system that allows you to automate your savings each and every payday.
And once you automate your saving, then you will see that you will begin to save without feeling the pain that most persons experience while savings. As the money that you save will be automatically taken from your pay and directed into your savings account without you even noticing that it is happening.
So how do you save money?
Well, by ensuring that you set aside an amount that is automatically deducted from your pay cheque and sent to your savings each and every pay period.
And how much should you be saving?
That is really up to you but at a minimum you should plan to save at least 20 percent of your income.
You want to start now to develop the habit of saving 20 percent of your income and you will be surprised at the financial results that you will be able to achieve with this simple formula. As saving 20 percent of your income will allow you to achieve financial independence for you and your family.
I also recommend that you split your 20 percent savings into two accounts. The first of these account is a
“peace of mind” account. And as the name suggest you will use this account to give you the financial peace of mind you need to deal with life circumstances as life happens to everyone.
So if the car needs repairing or if some one gets sick or there is some other emergency, you do not have to stress yourself over where the money will come from as you will have your
“peace of mind account” to draw from.
Your
“peace of mind account” should get 5 percent of your salary each and every pay, and you want to grow this account to at least four to six months of your living expenses.
The second account for your savings is your investment account. And you want to be putting 15 percent of your salary to this account each and every pay. And this account will be used to grow your money safely and steadily over time to create wealth for you and your family.
So decide today that you will take advantage of the best personal finance advice on how to save money by automatically saving 20 percent of your money each and every pay. And if your finances are not allowing you to do this right now then you need to get a copy of “
Taking Control of Your Money” workbook and create a spending plan today for controlling your spending.
Copyright © 2011 – Glenn S. Ferguson
Glenn Ferguson is a Retirement and Financial Consultant, Speaker, Coach and Syndicated Writer, helping you to painlessly take control of your money so that you can own your pay cheque again to create wealth for you and your family. Email to: glen@investinginyou.org website: http://www.financialcoachingwithglenn.com Tel: 242-327-2453 Fax: 242-327-2456
© Copyright 2011 by thebahamasweekly.com
Top of Page
