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Kindness in words creates CONFIDENCE. Kindness in thinking creates PROFOUNDNESS. Kindness in giving creates LOVE
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Success, Money and You: Part 2 of 3
Pay yourself first: Do not confuse it with spending on yourself first. A part of all you earn must be yours to keep. By first putting aside at least 10% of your earnings — and making that money inaccessible for daily routine expenses, you would see this amount build over years and, in turn, start earning money on its own. Over an even longer time, it would grow into a lot, because of the power of compound interest.
Thousands of people have built their fortunes, simply by first putting aside 10% of their monthly income for their future; and keep on reinvesting it to multiply that saving.
It requires a mental discipline to not spend that money till you achieve the financial freedom.
Master the Spending Game: Most people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.
So, How to Absolutely Save Money?
Spend less than you Earn!
Spending too much can wreak havoc with your financial goals. It keeps you in debt, prevents you from saving as much as you could, and turns your focus to consumption, rather than to wealth creation and accumulation.
Try this exercise. Go through every closet, drawer, and cabinet in your house.
Take out everything you haven’t used in last 14 months. This includes clothes, shoes, jewellery, utensils, electronics, sheets, towels, blankets, sporting equipment, audio cassettes, CDs, videos, games, toys, auto accessories, and tools — anything and everything you spent money on but didn’t use in the last year.
Gather it all together in one place, such as your living room, family room, or garage. Add up the price you paid for each and every item.
Don’t be surprised if you find the total more than your current credit card debt.
Think. Think. And really think. One way to curb spending is to start paying cash for everything. It makes you think about what you are buying.
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