Before You Make Money, Save Money

Regardless of you making a lot of money now, or are going to make a lot of money later, you have to know how to save. You are making $1 million a year and have done that for the past five years, but you spend all of them and have not saved a cent, you are wasting your five years time and effort making no production at all. When I ask you: "You are making $1 million a year for the past five years! How much have you earned to show?" If you have spent everything, you have nothing to show. "You mean you have earned nothing to show?" ~memory from Richest Man in Babylon.

It is all about increasing your networth. When you make $1, you increase your networth by $1. If you spend that $1, you are back to where you were, which means you are not doing anything to increase your networth.

This is true for fresh graduates who have got a job. They earned their salary every month-end, spend some on clothes, some on techs, some on beers... After 5 years working 9-5, they realized they have not added any amount worth talking about to their networth.

Wealth and abundance come by if you can increase your networth by not spending it. Saving is not easy. It takes discipline and great amount of faith in yourself.

Everything starts with training. Start today by saving away 5% of your income into a new account and label it "Do Not Touch". Many save to spend. Anyway, save to spend is still better than borrow to spend, which is encouraged by credit cards issuers around the globe. Do not borrow to spend, and avoid save to spend. When you spend, spend what you are worth spending. If you are not worth looking good, do not spend on making yourself look like a millionaire. Spend what you are worth, save the remainings and to grow your wealth.

Gradually increase the portion you save, from 5% to 10%, to 15%... Eventually, you will find yourself saving 50% of your income. You might be thinking: If I am saving 50% of my income, how am I going to support my living? Yes you can. It is weird. This method of increasing saving is nothing new in wealth building. Many who adopt this method found that their income goes up everytime they increase their saving percentage. It is that weird. It can be explained by their understanding of building wealth that brings them more wealth, or that they respect money and thus money flow to them. It is just weird. The Universe seems to like people who have a saving habit, and are commited to saving more and more.

Try it for yourself for one year. Afterall, you have nothing to lose but everything to gain. A good and effective method is to increase your saving rate by 5% every quarter.

Learning how to save is easier than learning how to earn. If you are earning powerful amount of money, saving can speed up your wealth building even faster.

Thanks for reading and see you next time!