Do you want to be financially free? I guess everyone wants it as no one wants to work for his whole life. But, it seems to be a dream that can never be accomplished. But, what I want to tell you is that your dream can come true. You can really attain financial freedom if you are willing to save your money. Saving is very important and is the first step to financial freedom. Even my mother can tell me that for every dollar that I earn, I should only spend 90 cents at most.
The saving rate in America is as low as 1%. The low saving rate means that people have to work forever for food and bills. Why is the saving rate so low? The reason has been pointed out by Frank and Muriel Newman. The key is the concept of saving. Many people save their money after their spending. This is absolutely wrong. You should only use the money after you have saved.
People like shopping and they will ask how can they save the money first and only spend the remaining. Yes, it is difficult. Therefore, you may need some help from the bank. Go to the bank and you will find a lot of different monthly investment plan. These investment plans do not require you to have a large sum of initial capital. Your monthly investment comes from the auto deduction of your monthly salary.
You may not believe that a little bit saving a month can help you attain financial freedom. I can give you an example to understand more about the monthly compound saving effect. If you have $100 investment every month at a 5% return. You may find that you have a much bigger sum of money at the end of the year due to the monthly compound effect. The monthly compound effect means the accumulated effect of principle and return from the first to the second month and from the second to the third month. Can you imagine the result if the compound effect applies to 20 or 30 year of times. You are going to be financially free.
The other thing that you have to learn for saving is control. You must learn how to control your spontaneous possessive desire. Most of the people go into financial problem because they fail to control their desires. This is especially important to those who love to use credit card for payments. The interest rate charged by credit card company is extremely high. Once you default the payment, your interest is also counted with the compound method.
Finally, you have to monitor your financial status. When you know your financial status, you will do everything to help yourself escape from the financial problem. Also, you are going to find new ways that will improve your financial status.
The saving rate in America is as low as 1%. The low saving rate means that people have to work forever for food and bills. Why is the saving rate so low? The reason has been pointed out by Frank and Muriel Newman. The key is the concept of saving. Many people save their money after their spending. This is absolutely wrong. You should only use the money after you have saved.
People like shopping and they will ask how can they save the money first and only spend the remaining. Yes, it is difficult. Therefore, you may need some help from the bank. Go to the bank and you will find a lot of different monthly investment plan. These investment plans do not require you to have a large sum of initial capital. Your monthly investment comes from the auto deduction of your monthly salary.
You may not believe that a little bit saving a month can help you attain financial freedom. I can give you an example to understand more about the monthly compound saving effect. If you have $100 investment every month at a 5% return. You may find that you have a much bigger sum of money at the end of the year due to the monthly compound effect. The monthly compound effect means the accumulated effect of principle and return from the first to the second month and from the second to the third month. Can you imagine the result if the compound effect applies to 20 or 30 year of times. You are going to be financially free.
The other thing that you have to learn for saving is control. You must learn how to control your spontaneous possessive desire. Most of the people go into financial problem because they fail to control their desires. This is especially important to those who love to use credit card for payments. The interest rate charged by credit card company is extremely high. Once you default the payment, your interest is also counted with the compound method.
Finally, you have to monitor your financial status. When you know your financial status, you will do everything to help yourself escape from the financial problem. Also, you are going to find new ways that will improve your financial status.
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