If
you’re an entrepreneur, chances are that you manage your money well. However,
when cash flow is tight, entrepreneurs can quickly find themselves dipping into
their dwindling savings account. Savings are created simply when you spend less
than you earn. Of course, it sounds a lot easier than it really is. In a world
where the objective is to get the newest car, better clothes, faster gadgets
and a big house, you can quickly find yourself on a downward spiral where you
are spending more than you earn.
Savings
acts as a safety buffer. First, it provides the opportunity to have an
emergency reserve in the event that income ceases. Secondly, they provide the
ability to have funds to allocate to investment and a prosperous future. One of
the smartest things that you can ever do for yourself is to develop the habit
of saving part of your salary, every single paycheck.
The habit
of saving will teach you how to distribute your income systematically so that a
definite percentage of it will steadily accumulate, thus forming one of the
greatest known sources of personal power. No one may succeed in life without
saving money. There is no exception to this rule, and no one may escape it. Put
aside 10% of your earnings to be paid to yourself. Save them for your dream.
For the
law of saving to really work, you need to commit to it regardless of your
current financial condition. Many people start by saving ten percent of their
income and then graduate to saving fifteen percent, twenty percent, and even
more. And their financial lives change dramatically as a result. When you
regularly put away ten percent of your earnings, you soon become comfortable
living on the other ninety percent. The remarkable thing is that when you force
yourself to live on the other ninety percent, you will soon become accustomed
to it because you are a creature of habit. This teaches the subconscious mind
that this saving is non-negotiable.
Begin
today to put away ten percent of your earnings. Set up a special account for
this purpose and treat your contributions to this account with the same respect
that you do your rent or mortgage payments each month. Secondly, become a
lifelong student of money. Read the best books, take courses and subscribe to
the most helpful magazines. Know what you are doing so you can always make
intelligent decisions when you invest your funds.
Financial
freedom comes to the person who saves ten percent or more of his income
throughout his lifetime. Individuals, families and even societies are stable
and prosperous to the degree to which they have high savings rates. Savings
today are what guarantee the security and the possibilities of tomorrow. You
will need self-control to say no to purchases that are not essential and the
ability to not dip into your savings account, which is slowly building.
In order
to save, you have to go without buying something. Being able to make the
necessary sacrifices is necessary for character building. The fact that only those
with savings have capital available to invest in businesses and other forms of
potential investment should motivate you to save. Without the motivation to
save, results will quickly wane… or may never even begin.
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