| Saving money is not easy and is made more | | | | Step 3 - Savings - Seeing the Big Picture |
| difficult if you have a short-term outlook | | | | If you could save 20 percent of your salary each |
| regarding your personal finances. If, like many | | | | month, imagine what that would mean in real |
| people, you are living from one pay cheque to the | | | | financial terms. For example, if you earn 2000 |
| next, it is difficult to put some money aside for a | | | | dollars per month and you saved 20 percent or |
| rainy day or for a summer holiday. But what if | | | | 400 dollars out of every pay cheque, after 12 |
| you were to change your financial outlook into a | | | | months you will have saved 4800 dollars! |
| medium to long-term one? You might believe that | | | | Regularly saving this amount of money would give |
| you cannot afford to think ahead and make plans, | | | | you the financial freedom to take advantage of |
| but in most cases you would be wrong. Most | | | | more of life's opportunities. You could plan the |
| people should be able to save some money and | | | | special holiday you have always wanted to go on, |
| with some effort, maybe even as much as 20 | | | | buy the car that you have been dreaming about |
| percent of their salary each month. | | | | for years, or help put a child through college. |
| Step 1 - Income Analysis | | | | When it comes to life's challenges, having a lump |
| First of all it is important to have a handle on | | | | sum put away could help you pay for private |
| where your income is going. Unless, we are on an | | | | medical care or deal with an expensive plumbing |
| extremely tight budget or are very money | | | | problem in the home, all without having to turn to |
| conscious for other reasons, many of us have | | | | the bank for a loan and getting into debt. |
| never really sat down and considered what our | | | | Now Do Something Special or Pay Off That Debt! |
| money is being spent on - we just know that by | | | | As we have already seen, knowing exactly where |
| the end of the month, it has all gone! You will | | | | your money is going is the starting point. Next, |
| know if you are consistently spending your | | | | start thinking about the big things you could |
| money on unnecessary purchases, for example. | | | | achieve with some money in the bank. Some |
| Having this knowledge equips you with the control | | | | people compensate themselves for not having |
| to change things a little or a lot. | | | | what they really want, by making many frequent |
| Step 2 - Saving Money Mentality | | | | small purchases and getting a temporary "feel |
| Many people have never been taught to save and | | | | good" sensation afterwards. Rather than satisfying |
| as children, immediately spent the money they | | | | yourself with small purchases, such as new |
| received without any forethought. You often hear | | | | clothes and CDs every week or always buying |
| people say, "Life is short, if you want something | | | | the latest mobile phone, think about how much |
| buy it now", but thankfully for most of us life is | | | | more satisfying it would be to save up and buy |
| not really so short and along the way we will | | | | or do something special like going on holiday or |
| have to deal with both opportunities and | | | | important like paying off a debt. You can now do |
| challenges. Having some money saved will help | | | | something which you previously thought was out |
| you make the most of the opportunities and ride | | | | of your reach, but is achievable with a little effort. |
| the challenges. | | | | |