THE WAY I SAVE

Many people try to save but don’t even know where to start or even how to save. I’m going to be sharing points about how I save money. Don’t worry I’m going to give details about how and where to start. So without further ado, here are my points

• Make a budget (You are your own business)
• Find your spending habits
• Know your needs for saving (be honest with yourself)
• Pay yourself
• Investments

The First point is obvious, create a budget and I don’t mean just your bills. Even in business people monitor every expense that comes out of there business because its not just the big things you need to watch its the little ones as well. If you want to save money you have to watch it, don’t over look the power of budgeting just do it.

Now that you already got your budget made assuming that you just did it. It will be easy to spot out your flaws or in this case your spending habits. Habits are

a settled or regular tendency or practice, especially one that is hard to give up

quoted by oxforddictionaries.com

Grant it I know personally that it is hard to get rid of spending habits, but that doesn’t necessarily mean that you can’t restrict your spending habits. “Wow Caleb I thought you were going to tell me to give it up.” Well once you realize that you can restrict your spending habit then you can decide yourself if its a healthy habit or not. In “Rich Dad Poor Dad” Robert Kiyosaki states 

Because students leave school without financial skills millions of educated people pursue their education successfully but later find themselves struggling financially they work harder but don’t get ahead, what’s missing from their education is not how to make money but how to spend money.

I promise you, if you can control your spending habits, you will save not just money but also headaches in the future.

Point number three, Find your needs. Be honest with yourself why are you saving: is it to get the new IPhone, a house, or a car? What ever the reason is you need to realize that in America the age of retirement is going up because many people can’t simply afford to retire. So ask yourself, is it going to benefit your need to retire? Your need for saving should be to retire one day. I hope that this post helps you realize the importance of saving for retirement. So take my advice and just do it.

Now we’re talking! Point number four, pay yourself. I understand you have bills, but you should always pay yourself first and by that I mean put money aside. This saying (“pay yourself”) might be a little cliché but people normally don’t, they take that saying in a completely different way and spend money for things they don’t need. The only way to actually have financial freedom is to put money aside, so just do it.

Did your parents ever tell you to invest, which is point number five. Okay so you have money to set aside, now its time to do the most important thing, that is, invest. There are so many ways to invest and you shouldn’t limit your options to only one type of investment. Your first investment should be in either an IRA or 401k; I recommend a 401k mainly because when you get a 401k the company that you work for pays you interest as long as your employed by the same employer. You can go to your human resource department at your job to see if they offer a 401k, and if they don’t offer it, get an IRA from betterment. Those aren’t the only investment options you can also invest in; stocks, bonds, mutual funds, index funds, or in yourself by going to school and reading. Point is, that you need to just do it. Trust me it will pay off, ten times over just by taking these steps.