Be Your Very Own Financial Manager
Financial
freedom comes to the person who knows how to save ten percent or more of his
income throughout his lifetime.
One of the smartest things that you
can ever do for yourself is to develop the habit of saving part of your salary,
every single paycheck. Individuals, families and even societies are stable and
prosperous to the degree to which they save money. Savings today are what
guarantee the security and the possibilities of tomorrow.
How
to Save Money and Practice Frugal Living
The first corollary of the Law of
Saving and becoming a money saving expert
comes from the book The Richest Man in Babylon by George Classon. It is to “Pay
yourself first.”
Begin today to save ten percent of
your earnings, off the top, and never touch it. This is your fund for long-term
financial accumulation and you never use it for any other reason except to
assure your financial future.
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The remarkable thing is that when
you pay yourself first, and force yourself to live on the other ninety percent
promoting your living, you will soon become accustomed to it.
You are a creature
of habit. When you regularly put away ten percent of your earnings, you soon
become comfortable living on the other ninety percent. Many people start by
saving ten percent of their income and then graduate to saving fifteen percent,
twenty percent, and even more. And their financial lives change dramatically as
a result. So will yours.
The second corollary of the Law of
Saving and becoming a money saving expert says, “Take advantage of tax deferred
savings and investment plans.”
Because of high and even multiple tax rates,
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. Self-made
millionaires, according to Dr Thomas Stanley’s book The Millionaire Next Door,
are almost obsessive about accumulating their funds in assets such as real
estate, self owned businesses and equities that increase in value without
triggering tax liabilities.
Invest in company pension and
retirement plans, 401(k) plans, IRA’s, Keough Plans, Roth IRA’s, Education
Investment Accounts, stock option programs and whatever else has been approved
by the IRS for long term financial accumulation. Make every dollar count!
2
Ways to Become Your Very Own Money Saving Expert Today
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 how to save
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.
Thank you for reading this article
about how to save money
and the importance of frugal living! Become your very own money saving expert
today and achieve financial freedom throughout your life! Please share and
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