How to Save Money: a Foolproof Method.

piggy bankSaving is important for many reasons. It helps you to invest, accumulate wealth, and have a safety net for emergencies. It allows you to improve your training and your skills. Savings can help you with retirement, children’s education, and other things that cost money.

Today I want to explain to you a foolproof method on how to save money, and I can assure you that it works because I have been using it for years now.

Why Is Saving So Difficult?

Let’s start immediately with the truth: saving money can be difficult if you don’t have a clear method to follow.

I myself have fought for years against the craze of spending every penny, and you know better than me that being able to count on a normal salary as an employee … this is not the best way to stay away from economic problems!

Saving can really be difficult, especially when you do not have the right mental attitude to do it: any expense is considered fundamental, even when it is not at all, because we often spend our money in an emotional way, to fill a void or compensate for some lack (true or presumed).

Nevertheless, saving money as a lifestyle choice is as important as having enough food to eat or shelter from the elements.

In fact, saving money can actually provide more security than any other assets in your life, because you have control over it and won’t have to rely on somebody else for financial help when you need it most. In addition, (you will realize it over time), saving allows you to increase your self-esteem and your ability to achieve the goals you set.

The Real Secret of Savings

That said, you may be wondering what “the right mindset” is, and how you can start saving today.

The real secret of savings is … to VALUE YOURSELF first.

You are important, and you have to reward yourself for this: every day you get up to go to work and the salary you get at the end of the month is the deserved recognition for your commitment.

Think about it: do you think it right that after a month of work and effort you have nothing left of everything you earn, or you even find yourself in debt?

This happens because in your unconscious, deep in the programming of your mind, you feel that you are not worth enough.

As if you don’t deserve that money and anything else is more important than you.

The method to defuse this bomb of negative thoughts is to start paying yourself first.

The Method: Pay Yourself First

From now on, every time you receive a payment, however small it is, first pay yourself a tenth part of what you have earned. (Does it remind you of something?)

dollarsEx: You earn $1,000 = 1,000 x 10% = $100 are the tenth part of your income

This $100 is YOURS and goes into your “savings jar”.

In reality, it can be a jar, a box, a piggy bank, or whatever you prefer, although behavioral finance studies have shown that it is much easier to save if you do it automatically, starting a deposit in a dedicated account on the day where you receive your salary.

Nowadays there are many banks that allow you to use this automatic function in the phone app, or there are asset management companies that provide you with a dedicated app: every month you set up the automatic transfer and you never forget to put your money aside!

It’s Not Just About Money

I hope I have made you understand how easy and possible it is to save a little money every month, to be able to dedicate yourself to what you really want and are passionate about, and make you happy.
Mathematically, the method to save is really simple and immediate, just put away a tenth of what you earn every month.

But I know very well that on a psychological level it can be difficult because you go to collide with the consideration you have of yourself and with the habits acquired over the years. Precisely for this reason, you have to make the process simple and sustainable over time.
In the course of the next posts, I will talk to you about how to manage the problems related to saving, but for now, you just need to know that you can also start with even 1% (or whatever you can start with), the important thing is to start!

In Summarycoins

We all know that saving money is important. But having a savings plan and getting into the habit of saving money can be difficult. A great way to do this is by only spending the first nine-tenths of your income and then saving the last tenth. This allows you to learn how to live on less, which can help you achieve your goals and make your life more affordable.
The importance of saving is often overlooked and not given enough attention. It’s crucial for many reasons: it reduces stress, it helps you develop good habits, and it gives you a sense of accomplishment when you reach your goals.

As in all things, the important thing is to start and develop the habit of saving: you don’t have to be frightened by the figures! Being able to save 10% of what you earn is an excellent result, but if you save even just $10 every month, then you will have $120 at the end of the year, which is a good amount of money to invest back into your savings account or to use to buy books or courses and improve your education and your future.

Saving money does not have to be hard if we set ourselves up for success as soon as possible!

If you want to to deepen the subject, you can read the beautiful book by George S. Clason, The Richest Man in Babylon


If you have any questions, or curiosities about the method of saving the tenth part of your income, feel free to write it in the comments below, I’ll be happy to help you and to know what you think about it!

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4 thoughts on “How to Save Money: a Foolproof Method.”

  1. Hi Miriam,
    I am a firm believer in “paying yourself first” and using different bank accounts as “buckets” to pay this 10% into. This is a simple but powerful change in behaviour that can have tremendous long term impact on your personal finances. It is so simple, yet not enough people are doing it. I look forward to your upcoming posts on how to manage the problems relating to savings and…what to do with that 10%.
    Thank you John

    Reply
    • Hi John, thank you for following my site!
      I have several things to teach on the subject since I have been practicing it for years and it has given me great satisfaction! Starting to put away the tenth part of your earnings is just the beginning of a money management journey! I hope you will stay with me along the way! Thanks again!

      Reply
    • I read now and the first affirmation is very strong, WHAT IS YOUR VALUE ???
      Wow, I never thought at my value, but it is right I have we have a value and we must estimate it,
      thanks, Miriam for your help, I think you can help and save a lot of people.

      Reply
      • Mercy Laurence!
        On a psychological level, the value we place on ourselves affects our whole life, the great English therapist Marisa Peer argues that a large part of our problems come from “not feeling enough”.
        Thank you so much for your interest in my work!

        Reply

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