UNDERSTAND HOW MONEY WORKS
The Wealth Fomula
Money doesnt grow on tress. You must work for it. If you want to build wealth, there is a formula for you to build on:
Where is the money? A good number of people always seem to have money problems. Most of the time, they're short on funds. Warren Buffet advises, "Dont save what is left after spending; spend what is left after saving."
PAY FIRST YOURSELF
Set aside 5 to 10% of your income to save for the future. If possible, save 15% or more. Treat it like a bill that you must pay, and pay it first. That's your "family financial bill". Doesnt make sense to pay your family first before paying other peoples bill? Your cable TV bill is not more important than your family's financial well-being.
BUY ONLY WHAT YOU NEED
Spending money is a way of life for many people. Shopping becomes a habit. It can become an addiction. Finding bargains and buying on-sale items dont always mean that you're saving. it could be that youre buying things you dont necessarily need. Know the difference betwenn what you really need and what you really want. When a person says they "need" new shoes, is it truly essential or simply a desire? How many people intend to buy a Toyota but drive home with a lexus?
SMALL CHANGES, BIG MONEY
Spending is a habit, so is saving. what if you make small changes to your spending habits and start saving $10 a day? Thats $300 per month