How to become a Saver from being a Spender

Once upon a time I was a Spender. I have yet to receive my salary but it is already consumed because of things that I wanted to buy. The sad thing about is, I bought items with the use of credit. I was not only a spender, I was also a debt magnet.

It crossed my mind that my financial life is going nowhere. I have no investments. I have no savings. Until one day, I decided to change my mindset. Instead of being a spender, I now wanted really bad to be a Saver. I was able to buy books on proper financial management and lifestyle simplification. I needed mentors, and it came in the form of books, audio books, internet articles, etc.

I was never the same after that. I’ve learned about the prosperity formula. I’ve never known, that for us to be able to prosper, we must follow the prosperity formula, which was the formula used by rich people.  And that it:

Income – Savings = Expenses

We must live on what was left after we deduct our savings from on our income. Before I used the poverty formula:

Income – Expenses = Savings

The problem about this formula is, most of the time, there was no savings at all. And there were times that instead of zero, it becomes negative, forcing us to incur debt.

It is recommended that we save at least 20% of our income and put it into something which would earn us interest.

Now, I am using the prosperity formula to help me boost my financial life so I can be financially free when the time comes that I already need to retire. I am excited when payday is already around the corner since I know that I can once again transfer funds from my payroll account to my savings account. Saving nowadays became more convenient because of online banking. With a few touch, we can easily transfer funds from one account to another.

But we should not just stop with just saving our hard earned money in the bank. We also need to grow our money exponentially. We cannot just rely on the 0.5% annual interest that our money earns from the bank. We need to beat inflation. And that can only with the use of investments. More on this.

Have a nice time. 🙂

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