Take a poll of 10 people, a hundred people or a thousand, and ask them if they’d like to be able to save more money, have more money or just build wealth in a way that they aren’t able to do so at the moment, and you won’t be surprised one bit by the results.
You’ll see a staggering 100 percent of those asked that the answer is inevitably “yes” when asked if they want to be able to save more money and grow a bank account that isn’t worried about the next paycheck or how they’re going to be able to finance college for the kids or that new roof that is ironically and ominously hanging over their heads.
The trick to saving money really isn’t much of a trick at all, but rather a persistence to know the following: what you owe, what you make, and what you’re spending money on at the moment, bills, frivolous buys, etc.
Good money managers have a system where they do one very important thing the moment they get paid: they pay themselves. And that is simply a fancy way to say that they take a percentage of their paycheck and put it aside for themselves.
As for budgeting, those who are in the know will tell you that a penny doesn’t leave their account without being accounted for from one month to the next. That isn’t to suggest that budgeting is a full time job, but you can argue that if you’re not spending money and earning money to the tune of knowing how to manage it, then you’re really not budgeting at all.
You’re simply guessing, hoping and praying that the money you make is enough to pay your bills. The argument suggests that you can’t have a vanilla budget, meaning you have to account for items that you buy when you’re not really thinking about spending or budgeting, such as a bottle of water three times a day that costs you $50 per month, or a lunch out at work three times a week that adds up to $120 per month. Those examples are why people are short on what they should have left at the end of the month, and throw their hands up in the air and wonder why they can’t save.
Tracking your spending is paramount but also has to be done in a way that is specific and smart.
Saving more money is about attention to detail, and without it, you’ll continue to pay your bills, make money and do everything right, except for having anything to show for it in the form of extra cash on hand.
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