A lot of people think that they are not making enough money and they are only making money to pay their day to day bills. Which is not entirely true? The fact is that it is not about how much money you make, but how much money you spend will determine how much money you will be able to save. You will become rich if you will save. The trick is saving and investing it right over and over.

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Our economy is made of spending. The government, banks, advertisers, everybody encourages us to spend. That is how the economy runs. Americans are known all over the world for spending. My children, when they got out of their schools, so many credit card companies sent then credit card offers, thinking that if they cannot pay their parents, they might pay to save their credits.

Everybody teaches you how to spend and not how to save. When you try to tell children not to spend, they thing you are from OLD SCHOOL. We have to live only once. First, make money, save it, invest, and then spend. You cannot spend money by borrowing money when you cannot afford to pay.

Look at our nation as a whole. The US government has borrowed so much money that close to ¼ of their budget will be spent on interest payments only. We are sitting on a time bomb which will explode sooner or later.

I know a lot of young kids who have 2 cars and motorcycles all on lease. Before the paycheck even comes, it goes straight to all these lease payments. Why did you buy a new car when I am making 10 times more than you and I cannot afford one and you are making an average salary and you bought a gas guzzler? How do you think you can justify these expenses? You have maxed out your credit card limit at well, you are 6 payments behind on alimony and child support to your ex-wife, and you spend $20 on fast food and cigarettes— how will you make it?

People don’t have a straight answer to these questions and they don’t even think to forget about spending or at least think that saving money is necessary to survive.

Please get out of it when you spend more than what you make. You will eventually lose everything: your house, your car, your wife, your kids, the dog, and your basic necessities in life. You will always be stressed out that your spouse might leave you and you will be considered a failure in society because you lost everything. How did this all happen? This all happened because nobody showed you that it is bad to spend more than what you make. Even if you do not make the big money, it is easy to save if you do not spend on items where you can avoid spending. For example, the best food can be eaten for $10 at home or up to $100 at a restaurant. Car payments can be only $250 a month to $2000 a month. Spend only what you can afford after putting your 15% savings in the locked box or your savings account.

I just finished reading the book “Three Cups of Tea,” written by Greg Mottelson. What a book! Greg saved every penny he had and opened schools for thousands of kids in the most dangerous areas of the world where you will not like to go for an hour. He would not have been successful in his life as one of the biggest peacemakers in the world if he did not have the habit of saving and spending lavishly.

If you save and invest $300 a month and make 10% annual return on your money, in 40 years this is what your money will become:

$150 a month – $5 a day = $940,000
$300 a month – $10 a day = $180,000
$600 a month – $20 a day = $3,000,000

You can retire rich just by small savings.
Imagine if you are young and making only $10 an hour. You can still retire as a millionaire if you put aside one hour of your work in Piggy and let the money multiply for you.

JUST DISCIPLINE YOURSELF

Start saving. For 1725 days, do not spend where you don’t have to spend. You will feel financially secured all your life. It is a magic once you develop these habits you will keep them all your life. You will be able to write your story from rags to riches, just be following things which you will be reading in this book. You just have to love money! Don’t let it go if you have made it! Save it! Financial freedom will only come if you will learn not to overspend it but save it. Open your savings account today and when you go to cash your paycheck, put 10% to 25% of that check in your savings account. Ask yourself, when you had some extra money in your bank or pocket, did it hurt you? The answer will be NEVER. That was the happiest moment you had. Ask yourself, will you go wrong if you have money as savings in your bank account, with which you are going to buy a house and a permanent roof on your head. This house will be yours where you and your loved ones will grow and enjoy the beautiful flowers and trees, barbecue, and a room where you will all sit down and pray and sing and eat together. A house if at all you get sick, your loved ones will care for you. Your house will be the roof on your head. The nest where you will rest and enjoy and you will spend golden days of your old age in it and when you leave this world you will give it to your loved ones and they will say, my parents gave it to me. So, please plan. Start saving that little money I have asked you to save. Do not spend unnecessarily on things where you can avoid spending. At least plan. Do not borrow and spend money!

By Ashok of http://becomerichinfiveyears.blogspot.com



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