Financial freedom comes to the person who knows how to save 10% or more of his income throughout his lifetime.
One of the smartest things that you can ever do for yourself is to develop the habit of saving part of your salary, every single paycheck.
Individuals, families and even societies are stable and prosperous to the degree to which they save money. Savings today are what guarantee the security and the possibilities of tomorrow.
Here are 4 ways to help you save money and accumulate wealth.
1) Pay Yourself First
The first corollary of the Law of Saving and becoming a money saving expert comes from the book The Richest Man in Babylon by George Classon. It is to “Pay yourself first.”
Begin today to save ten percent of your earnings, off the top, and never touch it. This is your fund for long-term financial accumulation and you never use it for any other reason except to assure your financial future.
The remarkable thing is that when you pay yourself first and force yourself to live on the other 90% promoting frugal living, you will soon become accustomed to it.
You are a creature of habit.
When you regularly put away 10% of your earnings, you soon become comfortable living on the other 90%. Many people start by saving 10% of their income and then graduate to saving 15%, 20%, and even more. And their financial lives change dramatically as a result. So will yours.
2) Take Advantage of Tax-Deferred Savings and Investment Plans
The second corollary of the Law of Saving and becoming a money saving expert says, “Take advantage of tax-deferred savings and investment plans.”
Because of high and even multiple tax rates, money that is saved or invested without being taxed accumulates faster than money that is subject to taxation.
Self-made millionaires, according to Dr. Thomas Stanley’s book “The Millionaire Next Door”, are almost obsessive about accumulating their funds in assets such as real estate, self-owned businesses, and equities that increase in value without triggering tax liabilities.
Invest in company pension and retirement plans, 401(k) plans, Roth IRA’s, Education Investment Accounts, stock option programs and whatever else has been approved by the IRS for long-term financial accumulation.
Make every dollar count!
How to Accumulate More Wealth
I’d like to share with you two tactics you can begin implement in your life today in order to start accumulating more wealth.
Save 10% of Your Earnings
First, begin today to put away 10% of your earnings. Set up a special account for this purpose and treat your contributions to this account with the same respect that you do your rent or mortgage payments each month.
Become a Lifelong Learning Student of How to Save Money
Second, become a lifelong student of how to save money. Read the best books, take courses and subscribe to the most helpful magazines. Know what you are doing so you can always make intelligent decisions when you invest your funds.
I’d like to leave you with a thought to share with your friends and followers:
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“Financial freedom comes to the person who actively takes control of their finances.”
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