Best Ways Of Saving Money -Financial Education

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How can you become financially free?

The most important longing of all living beings is freedom – financial freedom!

For many people, the freedom to do whatever you want, or to be wherever you want is like a dream that is far beyond reach!

And to become financially free is the desire of every human being.

Thankfully, being financially free is attainable to those who seek and really want it!

However, to become financially free, you need to have the right mindset.

You might say I am wrong! But, you will understand it if you read on.

When you are so much in lack of money, scarcity thinking sets in.

The scarcity mindset is the negative thinking that tells you there’s never enough.

Instead of encouraging yourself to move forward, it holds you back and makes you fall into a self-pity state and your life became stagnant.

You lost interest in life and actually lost all hope of living a happy life.

And when you cultivate a healthy mindset, you began to see a brighter and better perspective of life.

You started to have hope and the strength to push forward.

Now, if you want to become rich, you must earn money first, and that is common sense. I need not explain this.

There are thousands of ways to earn money regardless of your educational background.

If you fret about not having a good degree and hence you are not rich, then I want you to think again.

Look at the life of successful people like Bill Gates, Mark Zukerberg, and Jeff Bezos.

They do not study in the best college or university nor got the best degrees in the world, yet they shake the world with their successful life.

Why are they so successful?

Their success lies in their mindset. They understand the Psychology of Money and implied it in their lives.

Thus, having the right mindset is the first step to becoming financially free.

One of the ways to attain Financial Freedom is by Investing in Stock Market Business.

To start investing, you need to have a certain amount of money that you can put aside apart from your usual expenditures.

When we speak about the word ‘Investment’, the first thing that bombards our minds is, “I don’t have that MUCH money.”

You are right! You do not have that MUCH money!

Do you know why?

You do not have that MUCH money because your MUCH was in ‘HUNDREDS’ or in ‘THOUSANDS’.

This was the very reason why many people ran away from investing because they thought they need to accumulate MUCH wealth first to start investing.

If you are like –

“What?

I barely have enough to even pass the last days of the month and you are talking about investing? Where the hell am I supposed to get the money to invest?”

Hold on… hold on…

You might have heard about the name, Mr. Warren Buffett, who at the age of 91, accumulated billions!

Mr. Warren Buffett took 22% returns from his investments and yet he is much richer than billionaire investors like Theil, who took 97% returns from his investments for 22 years, and Jim Simons, who took 66% returns from his investment for 30 years.

Now, you must be thinking, that Mr. Buffett must have invested a large sum of money to be able to accumulate billions to his name. However, you are wrong!

Mr. Buffett actually started to invest at the very young age of 11 years only. 

You can read the life of this great investor in ‘The Snowball – Warren Buffett And The Business Life’. 

Do you think he might be having thousands of dollars to invest at that tender age?

No, of course not!

However, young Buffett understands the power of Compounding very well. This led him to start investing the small amount of money he has right from the beginning.

He did not have a big amount of money, yet he have time. 

What is the power of Compounding?

You can see the result from the power of compounding with time.

The more time you give your money to compound, the more your money will grow.

Now, you understand, that the money you invest need not necessarily be a big amount to become financially free.

Now, you must be asking, I hardly have enough money left to last me till the next paycheque, how do I invest anyway?

Well, this happens to everyone.

If you do not track your spending, you will never have enough money to invest.

The obvious ones from where you can cut your monthly spending are:

  1. Money spent on the party.
  2. Money spent on those new trendy clothes.
  3. Money spent on that vacation you don’t need.
  4. Money spent on that tour, where you went just for fun.
  5. Money spent on those cafes.
  6. Money spent on those gadgets which you like but not needed.
  7. Money spent on the new Box Office movies
  8. Money spent on buying that new iPhone which was just launched.
  9. Money spent on trying out the new menu of restaurants.
  10. Money spent to buy that luxury car you don’t need when you could have bought a decent one.

And the list can be endless. You can make your own list…

You need to get hold and take account of every single penny you spent for at least a month.

You can take a notebook and note down every single penny you parted with or you can get a monthly budget book to help you organize your spending.

After the end of three months, have a look at how you actually use the money to buy or spent on those kinds of stuff which you weren’t even aware of!

Once, you noticed where you can cut your spending, take another 3 months to deliberately cut down on those things which you now know are just a ‘waste of money’.

By the end of 3 months, you will see a certain amount of money left-over which will even surprise you.

Now you know what to do!

Yes, you are investing that money.

When talking about investment, there are three integral parts to it –

  1. The Principal Amount: The amount of money you have started to invest.
  2. The Rate Of Interest: The rate of interest for which you invest your money.
  3. The Time: The time period for how long you are investing.

Time is the most important factor when you started to invest. Think about the long-term – for a period of 30 or 50 years.

As we said earlier, the power of compounding works better and better with time.

You won’t see the result in the first 2 or 3 years. The difference will be noticed 4 or 5 years later.

If you are earning $700 a month, take out $50 or $100 from your salary and invest. Think in your mind you are earning $650 or $600 and not $700. Then manage your life with that much money.

This way, without no skill and without no hard work, you will be able to accumulate wealth and retire early.

And this is the best way to save money and become financially free!

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