Many people are in a financial situation where what separates them from financial collapse is a salary , a month, they live from salary to salary without saving anything. That is, most people are on the verge of a strong personal financial crisis if some unforeseen financial event occurs in their lives.
In these moments, with a strong economic crisis, with high unemployment, high taxes and more and more expenses you can think that it is normal, that nothing can be done and you have to wait for easier times.
I think quite the opposite, it is now, when things go wrong, when you are aware of the economic issue when you should put your finances in order once . And so when the crisis happens (which will happen, nothing is eternal) you take the new situation with force and in the best possible financial state.
Saving is like being on a treadmill with no end
You go to work, you earn money, you spend it and return to the same. It’s what Tims Kiyosiki called “the rat race.”
In order to truly live and dream, you must find a way out of that tape. You will not be able to get off at once, you have to do it little by little, it will not be easy and along the way you will have relapses and frustrations but also rewards that will motivate you to keep fighting.
Imagine a day where you do not depend on your work to live , imagine a day where you can work where you like and not even have to work.
It is a wonderful feeling that will not only make you happier but, along the way, you will be able to focus on the things that are really important in your life . Your stress level will decrease considerably and your family will also be much happier.
However to get to that state you have to start saving, investing, reducing your unnecessary expenses, in short, managing your finances.
How to take the first step towards saving?
We will see a guide to take that first step off the tape that limits you and change your financial situation in just 6 months.
Set a Tangible Goal
The first step is to set a goal. You are off the treadmill when you are spending less than you earn and save a lot of money every month. 10% for example, is a good amount to start. Then it is good to have an emergency fund created to protect you from unforeseen expenses.
For now, set a goal you can achieve in a reasonable period of time.
How can you spend less than what you enter?
Pay yourself first . Before paying any bill separates every month, just collect your salary a share for savings. Invest this amount in a savings account or a fixed-term deposit. And forget about that money for months. Depending on the amount of monthly savings, suddenly and almost without realizing it, you could have money saved very interesting for emergencies.
Rule Ten seconds. Every time you make a purchase of any kind, stop to think for 10 seconds if you really need and it is worth what you are going to buy. Very often, you will find yourself putting the item back on the shelf. For some people, an extension of this rule from 10 seconds to 24 hours works best. Time is the least, the important thing is the concept: think before buying.
With these two things it is more than enough to set the course in the right direction. If you are ready to go one step further, start monitoring your daily expenses for a month, for the subsequent creation of a budget.
In 6 months look at the money you have already saved. You will probably find more than you think. Better yet you will discover ways you never imagined to increase your savings, stay on the right track and be closer to financial independence.