How to Consistently Save Money Every Month
August 26th, 2010 Filed under: Personal Finance Tips — Personal Finance Author
Are you saving money every month right now? Are you consistently saving money every month? Many people might afford to save money once in a while after they have spent on other expenses but very few can actually save consistently every month.
And a closer look reveals that this difference is caused by habit, which can be traced back to that person mindset.
What could have made the difference?
George S. Classon had written a classic long time ago about ‘The Richest Man in Babylon’. The book is still available today and has become a required reading for people who want to reach financial freedom.
And financial freedom is more than just saving money, but it is a start nonetheless.
In that classic, Mr. Classon told a story of a young man who learn about money skill from a rich merchant in Babylon, which was reputed as the wealthiest country at that time. And the first lesson that he learned can be summed up in these words: ‘a part of all I earned is mine to keep’.
‘Part’ in that lesson is one tenth of whatever the earning is.
If you were to relate that lesson to our situation these days, what we earned can be our salary, commission or profit from business. By putting aside a part from what you earned, like ten percent of it, and you do that consistently before any deduction, you will have a solid saving plan in place.
Then you want to follow that with the wisdom of living below your means. Only in this case, you probably be better of living within your means. Some people becomes miserable when thy find that they have to settle for less than what they are capable of, which is essentially what ‘below’ means.
A good example is reading newspaper. If you are used to a monthly subscription to your favorite newspaper, you probably can scale that down and settle for the online version of it instead. It cost less and it is more environmental friendly because it cuts the use of paper. Not a bad idea at all, right?
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