In Part One of this series, we talked about some of the qualities you need to possess in order to prepare yourself for realizing continued wealth. In essence, you must simply multiply yourself. But, before we can move to that stage, we need to establish some specific things to build momentum to reach that level.
First, you must establish THE SAVING HABIT. Here are some things to do to get there.
CAPITAL CONCEPT
If you still do not understand the concept of saving money and simple and compound interest, deep inside your bones, I suggest you have a talk with your local banker. Make an appointment and you'll learn how you can start building capital and earning interest on your money. You'll see the world very differently from then onwards. You'll perhaps determine why you have been struggling financially all through the years and how to correct it.
If it is not a banker, it could be anyone who deals with money and makes a living lending money and saving money either for themselves or for others. Mortgage brokers and bankers, lending officers etc., are good candidates who you can pick their brains to get an understanding of the workings of money. You need to discuss things like, the concepts of principal and interest, building capital and the discipline required to do so. You also need to learn about simple and compound interest, savings bonds, trust funds, equity building.
Another avenue to look at is, to take an introductory course at a local community college in borrowing and lending or in Home Finance. It is really amazing how a large portion of the population do not understand how money works and because of this they spend money stupidly. This practice is like adding more fuel to a fire that is using un-dried wood to provide heating.
START A SAVINGS ACCOUNT
Practice to save at least 10% of your income every pay check.. You can start small. Put your nickels and dimes and quarters in a jar and discipline yourself not to empty it when it starts building in value. Then take it to the bank and deposit it there. Do not succumb to the temptation to crack the jar open and spent the money. This will be the test to see if you can commit to this discipline.. This idea is so practical yet so powerful. This exercise should have been taught when you were a kid, but some people never had parents to teach them about the value of money or some just never thought it was important. But, training like this is invaluable to kids in later years.
If you are in the work force, you can talk to your employer to establish a 401K plan on your behalf. Over time this amount builds to a sizable amount. You can save this for the future when you really need it-like retirement. You can withdraw it at any time but you'll have to pay the taxes on the amount you withdraw. So, leave it alone and withdraw it only for a very worthwhile purpose. Another good idea to discipline yourself to save is to make arrangement with your local Credit Union to automatically deduct a portion of your salary and put it into a savings account. After the first five deductions, you'll never miss the money. You would have adjusted your expenditure and tighten your spending habits. You can have a long talk with the Credit Union Manager also about money management and this will help you to establish in your head gradually, the value of saving and let it season itself in your mind. Little by little you will start feeling it in your bones and this would be a good indication that you are developing the saving habit. Yet, another idea that requires great discipline is dining at restaurants. Discipline yourself to dine out only once a month. Make home cooked meals. It is much cheaper and nutritious. Better still, buy foods stuff in the raw form as these foods are not processed and still have the nutrients your body needs to function well. Processed and package foods, however are loaded with preservatives that accumulate in your body and from toxins that slowly cause havoc in your body and makes you sick.
Next, you can do yourself a favor and deposit your entire Internal Revenue Services refund in the bank. Yes, this might be a little hard to do, at first, you might say. But, by now hopefully, you would have established that sense of VALUE that it would be an automatic response to put it away for that dire need you may have in the future.
From now on you'll see value and not waste precious money. You could even make a commitment to yourself to put your next IRS refund in the bank for a five year period …for a set purpose… say, to reduce your mortgage balance. And, by refinancing your mortgage with this saving, you can reduce our term from30 years to 15 years thereby paying a lower monthly payment to the mortgage company-the banker who holds the note to your house. Again, being a smart saver, you will continue to deposit your IRS refund for a further five year to perhaps pay off the rest f your mortgage by another refinancing or pay for your child college expenses, which is of major importance in your life.
By cultivating sound and careful money management habits, you'll be able to develop sound management techniques to manage your affairs like a professional. You'll not have to take several jobs to make ends meet and tolerate getting abused by your bosses and others who control your livelihood for stupid things you cannot control.
CREATE LEVERAGE
Later, in the final part of this series, we will discuss how to leverage yourself by adding more streams of income. With your developed savings habit, coupled with this technique you will amass great wealth, much faster. But you'll have to wait for Part Three for now.
But, if you cannot wait and want to get moving fast to multiply your income a thousand fold-using the LEVERAGE system then: CLICK the link below to learn about the 3 easy steps and the 5 vehicles that could propel your income to the moon.
About the Author:
The author is an internet marketer and researcher and controls several high traffic websites. He simplifies complex topics and dissiminates them to the public so as to reach broader audiences for product etc.
Lost Secrets Of Making Money In Today's World Part Two
