How to save money for your investments - without the pain!
Learning how to save money well is a habit that millions of people find incredibly difficult.
It's absolutely terrifying how many people out there live from week to week, having very little idea of how much they are spending, and often completely broke by the time the next payday comes around. What's even scarier is how many people actually spend 10% more than they earn each year, getting deeper and deeper into debt, without realising (or at least acknowledging) that they are doing so and often without any idea, let alone a plan, to get out of that debt.
Understanding how to save money effectively is one of the key skills you need to become a successful investor.
We all need to learn how to save money.
You may even be the biggest miser out there, but you can probably learn how to save money better!
Can you believe that I know of a shop owner with over a million dollars in his vault, and yet he still keeps the mortgage on the building his shop is in? Some might call that smart, if he was using that mortgage to finance further investments to increase his wealth, but he doesn't! So that building is still needlessly costing him a lot of money every single year. This person never takes a holiday, and is afraid to spend anything in that vault in case something happens to the business.
The trouble is, life quality - and even business success - suffers because of it.
A smart way to save money would be to pay off the mortgage, reduce the security risk (and cost) of keeping so much money in a vault, and redraw on the loan (on a property now worth far more than he paid for it) for further investment, or if something goes wrong in the business.
Simple tips to help you save money
These tips for how to save money are only a few of the ideas out there. They are all things that I have done myself, though, and I guarantee that they do work.
If you want even more tips on saving money, frugal living strategies and living better on less, I highly recommend you visit Frugal Save Wave. It has heaps to keep you going!
How to save money by doing it differently!
My friend Rob Bennet at Passion Saving.com has also taught me a lot about saving money - with a twist. He talks about saving money with passion for doing so: by weighing up whether saving it or spending it (usually to help you learn or make more!) is a better value proposition. After reading his book, I put some of his ideas into action with spectacular results, so I highly recommend giving his site a read!
All of these saving ideas have not only saved our money, but saved our bacon from the bailiff, particularly in tough times when family members have lost jobs. We have also saved money for investing, even on a very low income.
What's more, we haven't generally had to go without anything, even if clothes did become a bit threadbare while we kept up the internet connection for the sake of keeping business running!
The vital lesson is learning how to save money, while continuing to learn and improve so that you keep investing, and moving forward to financial freedom. If you keep doing just that, adjusting your tactics when things change, you'll soon have enough money to invest in anything you like, from property to shares, to antiques, to education, to holidays!