This book is all about saving money and investing it right. It is very simple and easy. Save now and invest while you are still young and have energy to do it. It is like growing seeds. Grow seeds now when you are young and when you will become old trees will become big over a period of time and will give you thousands of fruits to enjoy.
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The most important thing is to develop the willpower to save. Some parents teach their children the importance of saving money right from the beginning— they buy them piggy banks. Is basically a small box shaped like a pig that has a slot on the top in which they can put the change that their parents give them. This is a beautiful habit of teaching kids how to save. A lot of parents give a few dollars to their kids on special occasions like Christmas and birthdays and tell them to put it in the piggy bank. Kids love to do it. It is their bank. Sometimes parents will open their children’s piggy banks and count all their money to see how much they have. After a few days and months, they open it up again and count the money and it shows that the money has grown because they saved. Won’t it be nice if we all had those piggy banks and were shown to put a few pennies and quarters everyday and how they become $100 of savings in no time?
Kids are given the temptation that if they had saved up their money, then, with their savings, they would be able to buy a toy or whatever they wanted to buy with it.
NOW, as adults, I want YOU to buy a PIGGY BANK and start putting your money into it, which you would have spent otherwise.
Don’t buy a full pack of cigarettes, besides, smoking is not good for your health. Instead, if you really want to smoke, you ask your co-worker if he could give you one cigarette and give him the excuse that you are quitting smoking and eventually, you will quit smoking if you don’t buy cigarettes and you are ashamed of begging for it every day. That’s money you will be saving.
Don’t go to fast food places like McDonald’s and spend $5 there. Drink free coffee from the office coffee maker. Eat a heavy breakfast at home in order to save that extra $5 in your piggy bank.
There is a complete list of expenses you will learn in the next chapters from which you will save in order to put money in your piggy bank.
You will be surprised that at the end of the week, you were able to save anywhere from |$30 to $300 in that piggy bank. Your piggy will start becoming fatter and fatter as you feed it more and more.
Now, open a savings account at a bank with your piggy bank savings. Most banks offer free accounts with high yield interest rates. Write down every week what you saved. Make your savings bigger and bigger.
Now, once the money goes into your savings account, you won’t see it, so you won’t touch it easily. Make it sure that Piggy is well-fed every week, so that it becomes pretty fat at the end of the week. Instead of spending a little bit of money on yourself every day, you are making Piggy fatter. THE TRICK IS, don’t go out and spend your money, stay at home and save it.
You were close to spending $20 outside on lunch and dinner. You will also notice that you have had a much better dinner and you would have enough leftovers for the next day’s lunch. Your piggy will be happy because you fed it the $10 that you saved.
You will also notice that you are not going 15 miles out of your way to some fancy restaurant and you saved about $7 on gas money. Your piggy would be happy because you gave him that money.
Generally on a Monday night, you will spend $5 on lottery tickets because you want to be a millionaire and not realize that you won’t because the odds of winning the lottery are the same as the odds of lightning striking a submarine underwater. This is one bad habit that poor people have, and one of the biggest reasons why they are never able to save money.
Every Tuesday, Jim has a habit of either going to the movies or going to the bar with his friends. Now, a new movie costs $10 plus soda and popcorn for $3 plus the dinner after the movie for $15. This week, bill decided to stay home save that $28 and watch American Idol on TV.
On Wednesday and Thursday, Jim also has a habit of spending money at the pool halls, bowling alleys, race tracks, and bars. Jim changed his habits. Bill will go out with his friends who will go out and play tennis and some indoor games like cards or poker with chips and so on.
Bill, instead of spending money on fishing boat trips, will go fishing on other people’s boats and do fishing for free. Instead of paying money on golf and paying by his credit cards, got focused on how to pay back his credit card debt first, which was piling up on him, and also how to find a good place for himself to live which he can call his own instead of paying rent. Instead of spending time at the bars, restaurants, golf courses, and gambling, Jim started spending time with real estate agents and mortgage brokers.
Bill also noticed that in the beginning it was okay, but then some weeks later he will forget to feed Piggy. He did feel bad when he did not feed Piggy.
PROMISE YOUR PIGGY: Now, one thing I will like you to do is promise that you will always feed her something every day. Your piggy can die if you don’t feed her. However, when bill found out that he can definitely save $150 a week by changing his habits and making sure that his piggy gets fed too. Whenever he will go to the bank to cash his check he will take out $150 and deposit it in his savings.
By Ashok of http://becomerichinfiveyears.blogspot.com
Sub Prime mortgages · Wire Brushes For Power Drills, Angle Grinders · Investments in Real Estate: Case Studies of People – Part 6 · Investments in Real Estate: Personal Experiences – Part 2 · Cutting Discs For Metal And Stone · Recession And Bleading · Investments in Real Estate: Case Studies of People – Part 7 ·
