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Saving Habits

Saving, A Great Habit, by S. Goldsmith - millionaire!

What are you like with money? Do you manage to budget your money so that there is always plenty of money left at the end of each month, or does there always seem like too much month left at the end of your pay-check?

I'll let you in on a secret. Millionaires are good with money. Many learned how to be the hard way, through building up appalling debts and then having to pay them back. I know I did.

I used to be awful with money but I didn't only become good with money after I became a millionaire. Oh no, it was the other way round. I became astute with my finances and then I became a millionaire. If I hadn't tamed my wayward spending habits I would still be broke and in debt.

Yes despite having made many millions of pounds, I would have wasted it all on junk. I personally know several millionaires who have lost it all, every penny of it. So don't think that a million is too much to waste because you'd never find enough things to waste it on!

One great success habit you can start right now is - saving.

If you save enough you can live off the interest it generates. This means you never have to work again, if you don't want to. But as soon as you start to eat into the capital, then you are on a slippery slope to becoming a wage slave again.

I want you to open a savings account if you don't already have one and save at least 10% of what you earn each month. You will be amazed at how quickly even a small amount will add up. Savings habits are very satisfying to get into.

Most people do not have the saving habits or willpower to withdraw 10% of their earnings each month and put it into their savings account, so ask your bank to set up a direct debit that will do this for you. They don't charge for this service.

The type of savings account you are looking for is an ISA or one where you have to give 3 months notice before you can withdraw your money. This prevents you from getting your sticky little mitts on the money every time you want a new bit of junk!

In case you're thinking that you are unique and there is no way you can live on your current wages and save, then listen to this.

A popular technique at seminars is to ask the attendees how much they are earning. A wage will be called out and each person who fits in this bracket will put up his or her hand. Say the first wage bracket called out is £12,000, several people put their hands up; they are then asked to keep their hand up if they think they can live on this amount. Everybody puts their hand down. It seems nobody can live on this amount of money.

Next, £16,000 will be called out and people put their hands up. When these people are asked if they can live on this amount, everybody puts their hand down. This continues all the way up to the top wage, say £150,000. Surely these people can live on their wage? No. Everybody puts their hand down.

It seems that people quickly adjust their lifestyles to a cost greater than the amount they are earning, no matter how much they earn. People just don't save, and come up with all kinds of excuses as to why they can't save.

I know I did, but in order to pay off my debts and make my millions I had to learn how. Otherwise I'd still be broke and in debt.

Stuart Goldsmith.


Editors footnote-

If you are serious about success and want to move away from the financial situation which most people find themselves in, then the solution is simple.

Re-read Stuart's words above, and then JUST DO IT!

Remember action is the key to success. Reading, by itself, is of no use at all. You must TAKE ACTION.

You will be absolutely amazed at how successful the 10% rule is.

It worked for Stuart, it worked for me, it WILL work for you.