This is very laughable, isn’t it? Why do they detest saving so much? How very ironic!
I, on the other hand, take pride in being able to save. Now don’t get me wrong – I do not earn that much per month. But I still manage to save for my emergency fund. This is so that I can sleep better at night.
|Buy a cute piggy bank and watch it get fat!
How do I manage to save, though?
I go by this magic formula:
Income – Savings = Expenses.
This means that upon receiving monetary benefits and/or income, I immediately subtract my savings from it so that the remaining would be my expenses. Most people do the opposite: they subtract their expenses first before saving – I think that it is unwise to do so.
What if I have debts?
Then take care of the debts first before you are able to save. High interest debts will only drown you in the future.
What do I do with my savings?
Personally, what I do is I am right now in the process of building my emergency fund. I have about 2-3 months’ worth of expenses right now. When I reach 6 months, I will then invest the savings in a diversified portfolio. I am not in such a rush – I am still young, so I have plenty of time to be able to do so.
When is the best time to save?
Now. I can’t emphasize how the financial books I have read overuse this word. Save NOW.
Learn NOW. Invest in yourself NOW.
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