Finance

How do you actually save money?

In my previous blog posts, you would probably have learnt that having a high
net worth is not necessarily the same as having a high income…

In fact, many people who earn a great income aren’t financially literate and
end up having the same net worth as someone with a lower income…

In some cases, higher income earners can actually be worse off than
someone on a lower income because of how much unnecessary debt they
accumulate.

And many times in the end… it doesn’t matter how much you are earning…

If you have the spending habits of a poor person, you will always be poor…

Under financial stress, have no savings and then unable to purchase
opportunities to grow, invest or even enjoy yourself occasionally.

I know what you may be thinking…

Ok, great… in order to have a high net worth…

I need to have an understanding of how my money is moving in and out.

But how do I become aware of my financial situation.

There are many different ways to do it…

But a very simply method you can get started RIGHT NOW…

Is every month …

Get out a piece of paper and write down the amount you earn…

And then take into account your expenses.

Track everything you’ve spent…

Take into account taxes…

And debts you need to pay off.

How much money do you have left at the end of the month that is truly
YOURS to keep?

Just by doing this alone, you will be surprised at how much clarity you now
have.

You will also be aware of how much money you are spending on unnecessary
expenses and how to cut them out.

If you absolutely MUST have those expenses because it is absolutely
necessary or you think it will make you happy…

Look for ways to increase your income in order to support your lifestyle and
you will be able to have some savings by the end of the month.

It sounds simple but you would be surprised how many people don’t track
their finances.

No, you don’t need to do accounting as a living to get started on tracking your
finances.

All it takes is just a basic understanding of how money works.

Just think of this simple formula.

Money earned – everything you spend

Many people are spending money without even realising how much they are
wasting on items they don’t need or like.

Don’t be one of them!

Be aware. Be proactive. Decrease your expenses where you can. Look for
ways to increase your income.

And remember, your actions on a daily basis dictate how you will end up in
the future.

Are you going to continue being stressed financially or are you going to take
action, accumulate savings and be able to invest and continue growing your
net worth?

The ball is in your court.

You got this.

Take care