You have no doubt already heard about the ┬"A penny saved is a penny earned┬" phrase that Benjamin Franklin popularized so many years ago. The saying has experienced an upgrade though to ┬"A dollar saved is a dollar earned.┬"
Did you know though that a dollar saved is far better than a dollar earned? Surprised? Don┬'t be. A dollar earned will be taxed and in some cases, taxed highly too. A dollar saved will be earning interest and thus, generating you money. And have you considered the fact that you tend to spend more when you earn more? This is like a law of nature for many people. Earn more, spend more. There are the wise few who, instead of spending more, save more. These people are well into their way of building wealth.
Have you ever considered yourself a banker or a banking institution? Most people haven┬'t, not really. If you think about things, you do act like a banker. You are in charge of hundreds to thousands of dollars each month. Nowhere near even the smallest bank┬'s scale but the principle is the same.
If you would like to make more money, you will have to learn to save. You can start investing once you have enough money saved. But what a lot of people forget is that to truly build wealth, you have to create and protect what you have first.
Know what you want to do with your saved dollars. Are you saving for a specific reason like college funds or retirement? Are you building a nest egg so you can play the market? Your reasons for saving give you the added incentive to keep on saving even if the act of saving will require many a sacrifice.
How will you earn more dollars? Are you going to get a part time job and use the money you earn from that to jumpstart you┬'re a dollar saved is a dollar earned plan? Or will the money go to augmenting your income because your expenses are spiraling out of control?
How do you plan to make your dollars earn more dollars? Are you going to be conservative or do you have the nerve to take serious but highly rewarding risks? The pay off will vary depending on the method and amount of risk you take. Know as much as you can before you invest in anything. Take care not to be scammed in dodgy deals. Seek a financial adviser if you would like information or advice. Read up on how to invest wisely.
Take advantage of tax savings opportunities. A big chunk of your income goes to taxes so do your homework. Find out what tax savings opportunities are available to you. The less you pay in taxes, the more cash in bank you have. You can pay off debts faster, save more, invest more, do more with the extra cash. Find out what options are available to you and make use of them.
A dollar saved is more than a dollar earned in the long run. So keep on saving those dollars.
Subscribe to Coupon Saver Blog