I’ve talked about saving money before but today I’m going to talk about the saving money tips that are a must. These tips are the ones you should always follow no matter what. If you don’t a life of poverty is certain.
These tips are the commandments of saving and violating them will only result in continued fear that you will always be living one paycheck away from losing everything. So read these tips and ask yourself are you following them to your fullest ability? If not, what are you doing to solve this problem?
You Always Have To Save Money
Of all the save money tips I am preaching about this is the one that I learned the most about over the last two recessions.
Why, you might ask?
Because I made the same mistake both times. After losing thousands of dollars over the last two recessions it’s finally been ingrained into my head that I have to save money no matter what I do. It’s not an either or option.
Every day you continue not save it becomes harder to free yourself from the grip of poverty and living from one income check to another.
You Have To Save More Than You Spend
How much money do you save, and how much money do you spend? If you spend more than you save it will be impossible for you to move forward.
A good example of this is when I worked in financial services and I had a client who made over $200,000 a year. Not a bad income they should be saving tons of money right? When I ran a budget on their financial situation they were in the red.
Why did this happen? They didn’t follow the principle of saving more than they spent. This also proves that you can make a lot of money but if you can’t save even a penny of it you’re always going to be broke.
Keep Saved Money Out Of Reach
Another big mistake I made over the years with saving money was the fact that I didn’t keep the money I saved out of my reach. I would always put it in easy to access places like my savings account or worse my check book.
I was always trying to rebuild my emergency fund all over again. Every time I’d save a thousand dollars I would succumb to the belief I had fixed my financial situation and before I knew what had hit me I was broke again.
So where do I keep my money? I actually don’t keep it all in one place. Some I keep in a credit union, some in an online account, and even some in certificate of deposits. Keeping all of my money in different place allows me not to take everything I have and destroy everything I’ve saved up.
So How Did You Do
So how well did you follow my tips for saving money? If you were three out of three you are right on target, but if you had two or less of the following tips to save money you have some work to do.
Take some time right now and go through some of the tips on saving money I went over and see where you could make some changes. Maybe it could be as simple as going to your bank and having them set up a draw off of your checking or savings account into CD or even an IRA, or it could be as tough as going through you budget and looking for all of the little leaks in your budget that could save you an few thousand dollars each year.
The point is that you need to change what you are doing in any case to see better results. Without that you will always continue to see the same old results.
Chris
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