Thursday, October 30, 2014

Save Money!

“Quick riches are more dangerous than poverty.” –Napoleon Hill

We've heard of the story of the person who won the lottery but was later bankrupted and in a worse situation than when he first started-Why is that? Those who don't know how to manage 30k a year won't know how to effectively manage 1 million a year.

We live in a society of "buy now pay later". We want to look as if we're well off even when we aren't. We drive cars we don't own, live in houses we don't own and use furniture that's not ours.

"Money in the bank gives you a very safe foundation of courage when bargaining for the sale of your services. Without money, you must take what you are offered, and be glad to get it." -Napoleon Hill

No debt, with money in the bank, gives a person courage. Bill Lewis, a Leader and founder of LIFE Leadership, said on a financial cd that you should always be saving 25% of your paycheck every month so that every 4 months, you have 1 month's worth of money in the bank. He also said that you shouldn't start doing this before you cleared off the credit card and car debt due to the interest rate being often too high. (Do note that even if you have a car loan with 0% interest rate, your car is worth less every minute you own it hence why it's a good idea to clear off that debt as well).

Let's stop spending our money on the latest/flashiest gadget and get some savings!

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