Let me share my thoughts on saving money
I have numerous clients who seem clueless about the Art of Budgeting. They seem to have trouble understanding how to achieve their financial goals or fulfilling their dreams (which obviously involve money). Mind you, some of these clients aren't those from lower income tiers.
It often puzzles me how people never spend thinking deeper about their goals. I mean if someone intends to retire with 1 million dollars in their bank account by their late 50s, has that person even made the relevant calculations to know how much to set aside or invest? It can be no easy feat.
After calculating the required amount of money to set aside, one should then set foot on thinking about whether this amount is feasible. If not, then you may have to tweak the goal or think of ways to increase the savings/income. It is important to be realistic rather than be disillusioned. No matter how, DO NOT be disheartened.
An important lesson I have picked up through the years is - "Always pay yourself first". That means to set aside the correct portion of your income before spending the rest. This is opposite of spending freely and then attempting to save the pathetic remaining amount.
Comments