The tendency to start spending money immediately we receive our income, either as business owners or salaried workers, is high among many people. We end up spending as much as our desires and wallet will allow, leaving little or nothing to save/invest. Experts say, you should do the opposite. Save first, and leave the rest for consumption.
How Easy it is
Setting aside money for savings is not easy, I must say. Especially when you look at the long list of things you need to buy, fix or places you wish to go. Our needs and wants scream at us immediately we come into possession with cash. The first thoughts are often about the things we can do with the money.
It takes a lot of financial discipline to postpone consumption for another day, in order to save money. But this discipline, once cultivated, is one of the sure ways to financial freedom. It guarantees a dependable financial future, where you can reap the benefits of your years of savings.
For those who do not have the discipline to keep their spending within a predetermined level, experts say save first. This is an effective way to grow your savings because there is no temptation to spend all your money. When you receive your salary or business income, first thing to do is save part, before going ahead to spend the rest.
How Do You Do it
Set aside part of your income the moment you receive it. Invest this money in safe assets or hand it over to a financial expert/institution to guide you through effective wealth management. To make this easier, you can place a standing order on your account, instructing a portion of your income to be deducted and placed in an investment for you immediately your account is credited with your income. Over a long period of engaging in such a practice, you develop the habit of savings first –before consuming the rest.
This habit of saving first, would gradually grow your savings and investments. And move you towards becoming rich and your financial freedom.