Which of the hands above would you use for your costs? The remaining hand will be used for saving or investing. Depending on what amount of money you use for saving or investing determines how much money you will have to spare later on in life.
Setting money aside is not determined solely on how much costs you have. Equally important is the time in the month that you put money in your savings account. If you receive your money at the start of the month will you instantly put money away or are you first spending an random amount and only put your lasts cents into a seperate account?
I’m all about saving money. – Andre Drummond
When you are attentive to saving money you are moving ahead of the pack. A lot of people in the world do not save any money at all. A simple method to start saving is by setting an automated saving mechanism in place. It can be as easy as having a certain money being transferred every month. Preferably let this transfer be set on a date just before you receive your income. this makes your account decrease before seeing it increasing. This has a unconscious effect that you see less of an increase from your original number.
Changes in your financial situation don’t have to require huge sacrifices. Transferring money to a saving account before payday is easy and it helps you think about the money that has left your account. This helps to not only be thinking about the nice increase you see on your account. Make just small adjustments which have a big influence on your future. For example cutting returning costs are way better then reducing random purchases. Do you really need cable TV or netflix? Or does an internet connection suffice for you?
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