Steps to Saving More in The New Year

People don’t save like they used to, but they may be realizing it’s a good idea to start. Saving more is often among the most popular New Year’s resolutions
 
Saving more isn’t about getting a big raise or changing your entire life. It’s about taking step after step toward getting the things you care about. Here’s how you do it…

1. Set a specific goal.

The best way to prioritize long-term goals (getting out of debt, buying a car/house) over short-term ones (eating out, seeing a movie) is to come up with something compelling and make it as specific as possible. If you don’t map out your road to success, you’re bound to make a wrong turn somewhere. Choose something that fits your priorities and finances; an emergency fund adequate to pay all your bills for at least three months is a good place to start. It’s time to stop the hand to mouth syndrome of living from pay cheque to pay cheque.

2. Pay yourself first.

A common approach to saving is “keep what’s left at the end of the month.” If you’ve ever tried it, you know it doesn’t work well – there’s rarely anything left. Try this instead: Treat your goal like your most important bill. Think of it as money you owe yourself, due on a certain date.
Want to make it even easier? Enroll in the retirement program at work and have the money taken out of your paycheck automatically. You’re less likely to miss what you never see in the first place.

3. Find extra money.

As Stacy said, saving soon is more important than saving big. Think about all the little fees you pay, grumble about, and then forget on a daily basis.

4. Grow big.

You work hard for your money, but when you save, your money works hard for you – if you put it in the right places.

You Never Know...

Good day all the good people out there. Its the 17th Day of 2012 and I just came across something interesting today. If you or your business are facing major uncertainties in 2012, I wish you all good fortune and offer you the following story to help you through. It is a reminder that, unlike the certainties of life where we all buy in to only one possible outcome, the uncertainties of life open up the possibility of many outcomes. It's called "You Never Know..."

The Sultan of Persia had sentenced two men to death.
One of the men, knowing how much the sultan liked his stallion, offered to teach the horse to fly within a year if the sultan would spare him his life.
The sultan, fancying himself as the rider of the only flying horse in the world, agreed.

"You're mad,” said the other prisoner. “You know that horses can't fly. You're only putting off the inevitable.”
"Not so,” said the first prisoner. “I have four chances of escaping my sentence.
First, the sultan might die.
Secondly, I might die.
Thirdly, the horse might die.
And fourth…I might teach the horse to fly.”

Moral: Never be too certain of what the future holds. Happy New Year!

Merry Christmas and a Prosperous New Year

Hello, once again, dear readers. Today I will expand more on a simple concept of wealth. Please do read on!

The road to financial freedom starts with making the choice to be rich. Once you have made the decision to be rich, next follows how you are going to be rich. A person's worth or wealth is measured by how much possessions in money terms the person has less what that person owes others.

Wealth is often a build up over time of possessions. You aquire possessions from your income. Income is the amount of money that a person earns over a given period of time. To earn an income one must spend time and to accumulate wealth, one must increase income and reduce expenditure.

A bit of economics here income equals expenditure, in simple terms. I personally don’t know what economics is – or are! All I know is that expenditure is simply money spent on consumption, savings or investments. In the book You Can Choose to Be Rich, Robert Kiyosaki gives a 3-step guide to wealth accumulation. Be sure to read this book or listen to the audio book as it has a lot of guidance to financial freedom.

Till later.

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