What is your current financial state? Are you on the road to financial freedom or are you still struggling with money despite many years of toil? Many people think that the “rich” have it easy. They believe that because of their many businesses and smart investments money has ceased to become a problem. But what most people see are the only results. What they fail to appreciate is all the hard work that went behind these successes.
What about you? Would you like to enjoy the same prosperity that the rich are enjoying? How would you like to be financially free and never have to worry about money ever again? If so, then let me give you the first step to investing. It is not complicated. It does not even require much financial knowledge. However, it requires discipline and commitment. This is very simple to do and yet not everyone can do it. That first step is saving.
Yes. You heard me right. Saving is the first step to investing. According to the novel The Richest Man in Babylon, to be wealthy, you must first fatten your wallet. How? By saving at least 10% of all your income. Of course, if you can save more than that it is even better as you will hasten the process. But don’t go below 10%.
Many people find it so hard to save. They think, “But my income is barely able to sustain my needs! How on earth can I save?” If you think like this then you will never become wealthy. The reason why the rich are rich is that they pay themselves first. Think about it. Upon receiving your salary you pay everybody else but you don’t pay yourself. You pay the baker, the banker, the electric company, your school, the car company…And if there is any money left, you spend it. You go to a movie or go shopping. Now with spending habits likes these is it any wonder why you struggle to save a few dollars? Most people, upon receiving their salary, pay the bills and try to save what’s left. Why not do it the other way around? Upon receiving your salary, you automatically deduct 10% and place it in the bank or someplace safe. Then you discipline yourself to live on the 90%.
This may seem hard at first. But believe me, you’ll get used to it. It doesn’t matter what you do with the 90%. What matters is that you have 10% of your income stored away safely each month. This way when a great investment opportunity comes along, you’ll have the money to invest. When it comes to money, it’s not how much you earn that’s important. It’s how much you keep.