There’s no need asking if you want to be rich. Who doesn’t? Money can’t solve all your problems, but it’s a safe bet that more money could solve many of them. As it turns out, building wealth is not as difficult as many people make it out to be. Anyone can do it by simply saving one hour of earnings from each work day. It sounds easy because it is. Here’s how this method of saving now can protect you financially in the future.
Saving Made Simple
Financial gurus recommend saving anywhere from 12-15% of your annual income. That’s easy for someone to say when they have no debts, their house is paid for and they make loads of money from book sales and TV appearances. It’s another thing entirely when you count yourself lucky to be able to pay all the bills and have a little left over for spending.
When your budget is tight and you feel like there’s simply no way you can put away the recommended amounts, commit yourself to saving one hour of wages each day. Whether that’s $10, $20 or $50, it all adds up for considerable savings over the long term.
If your spouse or partner works, he or she should also do the same. Double the savings means double the financial security. And when you do the math, saving one hour of your wages equals 2.5 percent of your income if you work a 40-hour week. Over time, you can increase that number.
Pay Yourself Before Anyone Else
It’s in our nature to want to pay off bills as soon as they arrive. In actuality, you should be paying yourself first. When your paycheck is deposited into your account, take 12.5 percent out immediately and put it into savings. That may seem like a big number, but remember it’s only one hour’s worth of wages from each day. Don’t touch that money unless an emergency crops up.
To avoid the urge to pay that money to someone else or spend it on unnecessary items like machines, have it set up to withdraw from your account automatically every week, two weeks or month, depending on how frequently you’re paid. If you never see the money, you won’t miss it at all. To build your wealth even faster, whenever you get a raise, put all of that extra money in savings. Because you’re already accustomed to living at your current wages, you won’t need the extra.
All too often, people think that because they cannot do something perfectly, they shouldn’t try to do anything at all. Just because you can’t save $200 a week, it doesn’t mean you shouldn’t save at all.