Not just a view of us struggle every once in a while or all of the time with their finances. If we would have had in school the basics of personal financial management, most of us wouldn´t struggle as much as much as we might do.
There are four interesting aspects that can help to leave constant financial struggle behind.
The first one is the ability, to make, have and follow long-term goals or have at least a vision of your ideal future.
The second is the use of percentage calculation.
The third one is the willingness to step a bit shorter on the money that you spend for entertainment purposes such as going out with friends to eat something, party or something else, as well as things that you buy that are for your hobbies and well, entertainment, as well as snacks that don´t end your hunger but just please you temporarily for max. 10 minutes.
The fourth one is the good old patience.
Before we get into them, I would like to highlight the fact that big changes or progresses in our lives need for a certain period of time regular if not daily some application of the right actions.
Let´s take for example the impact of just 30 minutes a day for a new healthy habit and another new habit for the improvement of your overall situation or achievement of a certain bigger goal that you have.
We can combine for example taking a walk and brainstorming ideas for making the ideal lifestyle a reality. By practicing these two just 30 minutes every day, you suddenly spend 3,5 hours a week, 14 hours a month and 10.950 minutes a year doing something for your health and at the same time for the realization of living your ideal lifesytle.
Directed little actions can add up over time to something very beautiful.
The problem or challenge is that our brain likes to seek and get immediate gratification or pleasure from things we can do on a daily basis to satisfy our different needs and desires immediately instead of doing a certain thing that doesn´t bring immediately gratification or pleasure. Even though when accomplishing the goal of the unfun little action is promising a lifestyle that is way more free and fun. With a lot bigger and deeper reaching gratification.
This little immediate gratification or pleasure seeking inside of us can keep us over the long run from doing a lot of things that we thought we would love to do in the so called famous future.
The little things that bring us immediate gratification or pleasure but don´t build up on something bigger and more meaningful over time, are also taking our time and our energy.
Time and energy that we would need to use on practicing regularly the little things that lead over some time to living our bigger and deeper wishes and goals of life instead of thinking about them all the years while doing perhaps something anything but as fulfilling and gratifying as the thing or idea you regularly dream or think about.
“The ability to discipline yourself to delay gratification in the short term in order to enjoy greater rewards in the long term, is the indispensable prerequisite for success.”
Brian Tracy
Now let´s take a look at the four helpful aspects for saving some of your money.
A reason to save money
You need to know why you´re saving money since many of us simply don´t safe money without a particular reason. A burning reason.
It can be the vague image or desire of a future lifestyle that you would love to live or something more particular as traveling the world or buying your own house one day for example. Or the ability to pay expensive studies that you really want to study under these conditions. Or simply the desire to financially support your family more or your friends for times when they really should need it. Or something else that you believe needs and deserves more financial support at least. An organization or the kids and youth center or center for people with disabilities around the corner if there is one.
“Show me a man of average ability but extraordinary desire and I´ll show you a winner every time.”
Andrew Carnegie
Once you got one or several good reasons to save your money for, it is time for the second aspect.
The percentage calculation
Some people prefer to think only in clear amounts of money. I recommend to determine the percentage 5 %, 10 %, or even 15 % or 20 % of your monthly income and it´s amount of money to then get it right after the income´s arrival transfered to an extra bank account.
Willingness to save money
In case that you have been a Cliffspender so far every month, someone who spends all his money immediatley after getting it within just a couple of days, two weeks or barely make it with your money towards the next paycheck, you need to step a little back now.
But don´t worry, it won´t hurt as much as you probably or maybe think.
In case that you don´t live already on the very tight end of your finances, speaking that you nearly don´t spend any entertainment money because you barely can pay your basic bills, you can think now about the little snacks or joys that you perhaps still buy even though they are just tasty and kill some time. Or other things that just bring you a very short pleasure but nothing that lasts long and makes you tell it everybody. On these things you can practice now to resist them totally or just every second day and be aware of the amount of money that you are saving now.
“If you buy things you do not need, soon you will have to sell things you need.”
“Do not save what is left after spending but spend what is left after saving.”
Warren Buffet
Besides that you can be aware of the money that is staying now in your wallet.
You get used to spending your money less on little unmeaningful things and enjoy the fact of saving some money to be financially better off and to do some beautiful things with it.
You might even discover, that you actually like to spend your money on some meaningful things that do give you pleasure or purspose for the long run. Maybe something that you actually have thought about already longer but it´s price has been a bit over what you could afford easily with your income but could afford after a month or two of saving money.
Patience
By saving let´s say 120 EURO a month because you earn 1200 EURO net in a month, you have saved yourself after one year 1.440 EURO.
When you even can afford to save 20 % of your income, 240 EURO a month, you have saved yourself after one year 2.880 EURO.
Within two years you can with these examples save for yourself the amounts of 2.880 EURO or 5.760 EURO.
After 5 years both saving strategies of 10 % and 20 % would turn into 7.200 Euro or 14.400 EURO.
If you even look for or create an additional source of income, you can again transfer 5 %, 10 %, 15 % or 20 % or even more of course of it´s profits to your extra bank account for your savings.
You can in most cases only get to have more or bigger amounts of money when you don´t spend almost all of the money that you earn. Only by saving up to certain amounts that you need to let you make certain investments you can become really wealthy by time.
Saving money is your safest way to get to the point of wealth where you start to spend the money that you earn while spending it. This requires obviously a lot of smart work, time and several businesses or sources of income, more and more by time amongst more. It is reasonable that not a lot of men and women aspire that kind of life. It is much more work and sacrifice than most of us would believe if you want to get that wealthy. But you don´t need necessarily a university degree for that. In the last quote of this post lies perhaps a reason why all the work and trouble for becoming wealthy might be worth it.
“If you think being an entrepreneur is risky, try working for someone else 40 years and living off social security.”
Warren Buffet
But I hope that you have understood now perhaps a little bit deeper, why saving money on small unmeaningful things can bring you more financial stability or even be the start of letting you go through all the different stages of wealth towards it´s end. Your choice but saving money is actually your best friend with your finances.
“Maintain austerity in good times to avoid lay-offs in bad times.”
Carlos Slim Helu
Don´t forget to adjust your better abilities with finances to your conscious and subcponscious self-image. By daily affirmations and visualisations for example right before you fall asleep and when you just woke up or in a relaxed meditation, how your daily life looks like and feels like when you already have more financial freedom than now.
Enjoy becoming the savior of your finances or wealth.
“Wealth is not to feed our egos but to feed the hungry and to help people to help themselves.”
Andrew Carnegie
