Saving Basics
This, as most will agree, is step one in building wealth. We’ve all heard it before at sometime or another “It takes money to make money” While not being 100% true in all situations, I believe that this is a good indication of a persons seriousness to invest. After all if you can’t manage to save, no matter how small, how can you manage to invest no matter how small? Almost all of the books I have read about wealth building all begin with some sort of saving. Paying yourself first is a popular method of saving in most of the wealth books out there today. In the book The Richest Man in Babylon
it is put best “A part of all I earn is mine to keep” this revolves around a basic savings concept of saving 10% of all monies that you take in as this should be yours to keep. Whether in the form of income from work or income from investments this simple rule should be followed. For most of us this is the hardest step in building wealth.
Saving More
Personally I have used other ways to build savings over the years on top of the 10% method. For instance a popular one for a lot of people the piggy bank approach which involves hoarding all of the spare change from your pocket or purse at the end of each day. I even throw in all of the change I find on the street, in the car, or even in the couch! It’s incredible how much money can be saved just in coins over a couple of month’s time. Even to this day I deposit $100 in the bank every couple of months just in rolled coins alone! Another method, I have been using personally, is also saving every $1 bill that is in my pocket at the end of the day. When I reach $100 the same applies, it gets deposited in the bank just like the rolled coins. Aside from these I also contribute to my companies’ 401k plan up to the limit they match and also contribute to a Roth IRA.
This, as most will agree, is step one in building wealth. We’ve all heard it before at sometime or another “It takes money to make money” While not being 100% true in all situations, I believe that this is a good indication of a persons seriousness to invest. After all if you can’t manage to save, no matter how small, how can you manage to invest no matter how small? Almost all of the books I have read about wealth building all begin with some sort of saving. Paying yourself first is a popular method of saving in most of the wealth books out there today. In the book The Richest Man in Babylon
it is put best “A part of all I earn is mine to keep” this revolves around a basic savings concept of saving 10% of all monies that you take in as this should be yours to keep. Whether in the form of income from work or income from investments this simple rule should be followed. For most of us this is the hardest step in building wealth.Saving More
Personally I have used other ways to build savings over the years on top of the 10% method. For instance a popular one for a lot of people the piggy bank approach which involves hoarding all of the spare change from your pocket or purse at the end of each day. I even throw in all of the change I find on the street, in the car, or even in the couch! It’s incredible how much money can be saved just in coins over a couple of month’s time. Even to this day I deposit $100 in the bank every couple of months just in rolled coins alone! Another method, I have been using personally, is also saving every $1 bill that is in my pocket at the end of the day. When I reach $100 the same applies, it gets deposited in the bank just like the rolled coins. Aside from these I also contribute to my companies’ 401k plan up to the limit they match and also contribute to a Roth IRA.
Invest
No matter what ways you decide on saving be sure to put those savings to work. In the classic book Rich Dad Poor Dad the author gives good definition to properly investing in assets and defines what assets are. Investing in assests with your savings puts your money to work for you! Some of these include cd’s, bonds, stocks, and lending. I will cover some ways to get this money to work for you in many upcoming investment ideas.
Ideas
If you have different savings ideas please feel free to leave a comment on how you save your wealth.
No matter what ways you decide on saving be sure to put those savings to work. In the classic book Rich Dad Poor Dad
the author gives good definition to properly investing in assets and defines what assets are. Investing in assests with your savings puts your money to work for you! Some of these include cd’s, bonds, stocks, and lending. I will cover some ways to get this money to work for you in many upcoming investment ideas.Ideas
If you have different savings ideas please feel free to leave a comment on how you save your wealth.
The best saving plan ever! Find yourself a bf/gf! He/she will force/remind you to save the amount that you agree to put in your/joint account.
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