Saturday, May 23, 2020

THE DISCIPLINE OF REGULAR SAVINGS AND INVESTING

Resolve today to get out of debt, stay out of debt  and become financially independent.
Your goal, and everyone’s goal is to achieve financial independence as soon as possible in life. This requires continuous financial discipline with every dollar you earn. The key  is for you to save 10%, 15% and even 20% of your income throughout your life.
a. Because you are probably in debt already, begin by saving 1% of your income  and discipline yourself to live on the other 99% until this becomes a habit.
b. Increase the amount of monthly savings to 2%, 3% and eventually 10% and 15%. Discipline yourself to live on the balance.
c. Rewire your thinking from “I enjoy spending” to “I enjoy saving.”
d. Delay; defer major purchases for 30 days.
e. Investigate before you invest. Two thirds of investment success comes from  avoiding mistakes. Invest as much time in studying the investment as you invested
 to earn the money in the first place.
f.  Pay cash for as many things as possible. Get rid of your credit cards. When you pay cash, the amount you are spending is far more visible and painful.
g. “If you cannot save money, the seeds of greatness are not in you.”  (W. Clement Stone)

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