Saving is not easy, it requires the commitment of everyone, needs to be systematic and be clear that only creates wealth over time (not overnight). On the other hand, depends only on yourself.
There are a number of steps, if met, would help many people to build wealth.
1. Spend less than you earn
It is the simplest rule of all. However, there are many people living beyond their means. Spending more than we earn, leads us to enter into debt and, once we go into debt, it is more difficult to save.
One tip that can help you to comply with this rule "does not work to pay that mortgage, loan, buy clothes / food, school expenses, dining out, holidays and then, if there is any money left, save" NO, first turn away an amount of my monthly income and then come the bills.
The best thing is to look like saving a percentage of your income. The amount you put it and adjust your monthly budget to cut spending and to save. It is important that you feel comfortable with the percentage of savings.
2. Sets the objectives you want to get
Everyone saves for a purpose (travel, canceling mortgage, education, retirement, etc ...). If we have a clear goal for which we save, we know two important things:
- Amount we need to save: the more money you save the more money you get in the future
- Time we have to save: The less time I have left to achieve the purpose for which I'm saving, the less I can save. The more time I have, the easier it is to design a savings plan
- Profitability: the more time is left for our purposes, the lower the amount I have to save and lower the returns that have to require my investment. If I wait 55 years to save for retirement, the less time I have to create that wealth, the greater the amount I have to save, and the greater the return that I will have to require my investment.
The wealth is only created over time. It is impossible to have eg the € 100,000 overnight, unless we win the lottery.
3. Save money every month
After determining the purpose for which I save and determined the
percentage that will save every month we can invest those savings on a
regular basis.
Most important is the discipline , want to save and be aware that we do not save for others but for ourselves.
