“Do not save what is left after spending; instead spend what is left after saving.”
― Warren Buffett
The verb ‘save’ is defined by the Dictionary as to keep safe or rescue (someone or something) from harm or danger or to keep and store up (something, especially money) for future use.
Some famous money minds would say that saving is boring, but I love the definition to keep safe or rescue from danger. As a cop that intrigues me since one of the reasons I was drawn to the profession was to to keep people safe, so it only makes sense to keep my money safe too, right?
Below we are going to look at some simple questions and answers about savings, I know it will help you save more lives I mean more money.
Q: Do I need really need to save money?
A: Yes you HAVE to save money. Saving rescues you from the danger of being broke. Broke, living paycheck to paycheck, is no way to live. You are better than that’d you are worth saving. So please save, save for an emergency, save for a rainy day, save to buy a car, save because you are worth it. You are worth an amazing future!!!
Q: Is there a secret to saving?
A: Yes, come close, listen carefully, a little closer, lean your ear in, close your eyes and here it is. The secret is to spend less and stock pile the rest. If you are like me and lack the self-discipline to do that then automate your money. I get paid every other week the same amount unless I work overtime. On that same day a set amount of money is taken out of our account, some goes to our deferred compensation account and some goes to our emergency account.
Q: How do I start saving?
A: You start right where you are. You write down what you spend money during the month then add it up. Next, write down how much money you make in a month and total that up. Take your total money made minus how much you spend, wa-la, whatever you have leftover, direct it manually or automatically to the savings account or better yet have it taken out on every payday.
Q: What if my entire paycheck goes to bills?
A: You need to create time, distance, and shielding between your spending and earning. What do I mean by that? Take a breath, you have to create distance between how much you make and how much you spend. Create a budget! Yes the B word a budget is how we track our spending and earning. Sit down and take the time to look for excess spending in the budget, ie., coffee, subscriptions, or eating out too often. Okay Danny Budget, but I like my life style, then you need to create shielding, by shielding I mean more money! Go work overtime or deliver pizza or deliver Amazon packages or teach or whatever earns you more money. Do something to make more money if you don’t want to reduce your lifestyle!
Q: What is the wise thing to do with this money?
A: I saved the best for last. This question can be applied anywhere and anytime. What is the wise thing to do with (fill in the blank)? This question is best used on money situations because more often than not our inner voice is speaking to us. That inner voice may be telling us the right thing to do or it may be telling us the wrong thing to do or a little of both. So when we financially pause, take a breath and ask what is the wise thing to do with this money? We will usually get a simplistic, clear answer. Share some, save some and spend some.
There isn’t a secret to saving. Believe me, I can see the future. And your future is bright, if you make a plan and save for the future. Otherwise in 40 years your children will be taking care of you, but if you save now, you will reach millionaire status. Patience and persistence will make you an amazing person who has option after option after option.
The price of anything is the amount of life you exchange for it. – Henry David Thoreau