Saving has the ability to help you achieve financial success for you and your family when you do save correctly, consistently, and exploit it to its fullest. Success through saving is achieved when you save correctly by doing these things:
o Maximize your savings.
o Create a plan to save a considerable portion of every paycheck.
o Constantly think “save” rather than “spend.”
More than 59% of all American families view saving as what is “left over” from their income and spending habits. You will never be able to reach financial success under such circumstances! Meager savings is why many people believe there are no rewards to saving. The rewards come when you begin to save correctly. When you create a plan to pay yourself first, and increase your savings over time, maximizing how much you save and accumulate. When you begin to maximize your savings you are not hoarding money, or living in misery because you cannot buy anything; rather, you are saving toward your personal success. When you begin to save correctly you will begin reaping the genuine rewards.
What is meant by saving correctly? How can you really save your way to success? You must save more than just a measly 2 or 5 percent. The latest reported numbers show that Americans, on average, are only saving a minuscule 1% of their income. This is not saving; this is just putting aside what is left over. True saving is when you maximize your savings–saving 30, 40, 50% or as much as 80% under certain circumstances! You must invest your time to develop a budget and savings plan allowing you to increase how much of your income you save each much. Stop saving what is left over at the end of the month, and place saving and saving your way to financial success as your top priority–start saving first out of every paycheck.
To save correctly, you must think “save” rather than “spend.” You do not save to buy something, such as a car; rather, you are saving toward success. “The word saving has come to mean “spending” in our society. People are fooled into thinking they are saving money when they are in fact, spending it. For example, a housewife will buy a new household appliance because it was advertised with the words, ‘Buy now and save $49 off the regular price!’ You do not save money by spending. Then there is the man who subscribes to the bank’s ‘Christmas Savings Plan’ to save money for Christmas shopping. That is not a plan for saving–it is a plan for spending.” wrote George M. Bowman (How to Succeed with Your Money, The Moody Bible Institute of Chicago, 1974). When you save money only in order to spend your money, you are not saving your way to success.
Saving money to buy an expensive item does not help you reach success. Once the expensive stereo, car, or fancy dress is bought, the money is gone. True saving is when you keep your money, become wealthier, increase your assets and net worth, and then become a financial success because of it.
If you spend all your money, how do you expect to become successful? Maybe you will win the lottery, but unless you are extremely auspicious, do not count on it. There is a better system with much more favorable odds of up to a 100% guarantee. That system is saving. Save your money and you will become successful.