Tuesday, March 20, 2007

Best Way to Save Money Tips

A lot of people are struggling and even asking for tips on how to save their hardly earned income. How to save based on the spending style that I have now? Well, let me reveal the best method to save money. This best method as also described by George S. Clason in one of his books - Richest Man in Babylon is to Pay Yourself First. The moment you get your pay, set aside a certain sum for yourself. Then you only start thinking about paying other people.

Thinking of it, it makes a lot of sense. The money that we earn belongs to us and so it is only natural that the first person to be paid is ourselves. So pay yourself first, then only pay others (e.g. your spending, your investment and etc.). For those who have difficulties to save, you will find this method extremely useful. Before you start spending, what you need to do is to set aside some money for yourself and make sure the money is untouchable. Then, you can spend the rest of the money as free as you can. Having trouble saving money? Try to Pay Yourself First. You may ask how much to save? Well, it depends on your goal how much % you would like to save right? Nevertheless, I will cover this in next topic as well. As far as I concern, paying yourself first is the best and proven strategy if you have trouble saving your money.


Mt. said...

i also read this book lately and just want to add one more word to it, "Automatic". That is Pay Myself First Automatically .... without the need to worry about it or any discipline. Just make it auto and forget about it ..... u will b suprise how powerful this automatic is when you look back ...

ChampDog said...

I think missed this comment. :D Yes, I'm doing that every month. I actually opened another saving account and transfer from my main saving account to it monthly. As you said, it is really amazing to see the result after few years.

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