Hello there! I guess if you are reading this you are probably more of a spender than a saver, well the good news is, you can change this, maybe you already know a lot about this topic, but it’s never enough to reinforce the message, and who knows you learn something new?
Here are the 5 top reasons why you should start saving your money NOW!
1 – Emergency Fund
Number one reason starts with emergency funds, i don’t think i can make it anymore obvious, during life sometimes insurance is not enough, you will need some backup money at some point, better be safe than sorry, in truth, almost anything in your life will need a backup too, apply this principle and Voilà!
2 – Discipline
Saving money helps building you discipline, which will lead you to a behavior change, discipline + habits = do whatever you want. I’m not kidding, but to build discipline one must take small steps, and try to not outrun one’s own limits. I’m the living proof that discipline in every area of your life will help you achieving your goals, no matter what they are.
Keep in mind though, it might take a long time before seeing any result, but it will come.
3 – Goals realization
Not only it makes you being able to do anything, but it is a physical world bridge to accomplish goals that doesn’t depend only of your willpower and habits. If you want to buy a house, save a certain % of your income to it. Wanna pay the mortgage, do the same, buy a car? The same once again, and the list goes on. See? It is that simple, take a part of your money to do X, wait time Y, and get result Z.
4 – Passive income
If you are like me and you don’t have any specific goal where your money is directed to before the ultimate goal of Financial Freedom, or you are just saving for whatever other unknown cause. You can just like me, admire your passive income growing each and every month (or maybe days/weeks, it depends where your money is located). I guarantee that the feeling of seeing your passive income growing and adding to your total wealth each time you check it is a really good one!
5 – Financial Freedom
And last, but not least (maybe the most important, it depends on the person view), Financial Freedom, what do i mean by it? I mean, you will have so much money stored in your bank account and invested that you will have enough until the day you die if you use it on a pre set form. Or maybe if you are more ambicious (like i am), you will have a never ending fountain of money for your appreciation, and probably ever growing one too, growing so much you can’t even use your passive income because your lifestyle won’t afford to spend so much.
That really is a dream like scenario, isn’t?
So Black US, how do i get started?
Some people might say, if you can’t save enough to invest, it’s better to not even start. Well, do you know what i say to it? BULLSHIT, just start already saving any money ammount you can (i suggest you to save 20% of your wage at least, if you can spare it), in whatever measurable time you want, it can be daily, weekly, monthly, anual (i suggest on a monthly basis). Whatever! You get the ideia, just start it already, i promisse you won’t regret it, and if you which to spend and give up, you can always do it, your choice, the money is yours and in your control anyway.
But maybe i’m forgetting something important here, if you have holes in your boat, it’s better to patch it first. What i mean is, if you have debt, it’s better to start get rid of it first, not always though if you have some investment that pays you more than the speed from the taxes of your debt. I might enter on this on another topic.
Well, now you are debt free and started save money, what next?
Have a goal? Make a budget!
Want Financial Freedom? Make a plan on how to achieve, how much do you want on a monthly basis to spend? How long it will take to achieve FF? Why do you want Financial Freedom (so you don’t need to work? Security of mind, lessen your pain and misery? travel the world?) Maybe it would be easier to ask why you wouldn’t want FF, there is simple no way i would pass it!
Now you that you have your objective/goal set, start invest your money (which should be describe in detail on your plan of investment), if you have some info already, it’s best to take this step as soon as you can, you can adjust on the way, besides, i assume in this case you already know some stuff so you don’t take the worst path ever! And even by failing we gain a lesson or two.
Want to read more about investments types and how to invest?
Wait for a next post! Hahahaha kidding, you can check out these two links here:
Good start and CIA guys!