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Secrets To Wealth
Saving for wealth
The next secret to wealth: saving. "A part of all you earn is yours to keep" (The Richest Man in Babylon)
In order to achieve your financial goals, you'll need to save. It sounds so obvious it surely can't be a secret! But there are so many competing claims for your cash that it can be difficult both to kick-start a savings programme and to keep it going.
Saving shouldn't be confused with investing. Savings are the regular or lump sum amounts you put away. Investments are the various options you employ to make money on your savings..
Helping you save
To successfully save, you need to create some sort of regular savings pattern. This can be as simple and effective as arranging an automatic payment to transfer a portion of your pay to a savings account. It is important to always remember that saving is a long-term venture.
the Shape of Money has a useful topic, "A Guide to Becoming a Successful Saver", which contains tips and assistance to help you create a regular savings plan.
For many people, however, saving anything is just not possible. Not because they don't earn enough, but because spending is just too good and easy an option. Anecdotal evidence suggests that their best saving option is to seamlessly move money out of their bank accounts and into an investment which is locked in some form.
An investment that is locked doesn't mean you can't get your money out, but it does make it more difficult. For example, it's easier to get money from your bank savings account than it is to sell your property investment. Examples of these investments include residential property investment and unit trusts.
Why not check out the savings goal calculator to calculate the regular savings amount you'll need to achieve your financial goals?