HOW CAN I SAVE MORE MONEY?

There’s not always one clear place to start on the journey to financial freedom. Like most things in life, there are multiple paths to get to the end result we’re searching for. When it comes to improving our finances and working towards a goal of financial freedom, there are a variety of techniques to consider and maintain in our arsenal. One of the most important of these is saving. Savings are a key part of financial independence. But I wasn’t always motivated to save my money. One book that got me thinking more about it and lays out many of the basics of savings and the power behind it is The Richest Man In Babylon.

Written by George Samuel Clason, this book helps introduce the importance of savings and just how much can be accomplished by forming a habit of keeping some of the money you make for yourself (of course the more the better).

HOW MUCH SHOULD I BE SAVING?

Although this book was written in 1926, it’s still as applicable today as ever. Presented through story form, the book discusses the idea of saving 1/10 or 10% (.10 in decimal form) of your income. You can multiply your paycheck by .10 to see the minimum amount you should be saving for yourself. Here are some examples:

If your paycheck is 50 dollars a week. 50 x .10 = 5.  That’s at least 5 dollars you should be saving each week.

If your paycheck is 500 dollars a week. 500 x .10 = 50. That’s at least 50 dollars you should be saving each week.

If your paycheck is 5000 a week. 5000 x .10 = 500. That’s at least 500 dollars you should be saving each week.

While the number (10%) won’t work for everyone, at least listen or read the book and try to learn from the general ideas presented in it. Saving is important. Not everyone wants the same things in life, so there is no universal amount we should all be saving.  It’s important to know what your goal is and develop your habits around that.  Some people will want to save more for a trip or house or some other target they have in mind. Others will want to spend more to enjoy the phase of life they are in. There is no right or wrong, only a path to achieve the objective you have in mind. But regardless of your goals, you should always be saving some of the money you make and keeping it for yourself.  That means not spending it on bills or clothes or anything else but saving it and investing it to grow more.

If you’re not saving, you’re just a funnel between your employer and other business.