Saving Money

The Principle of Saving
The main principle of saving is to set an amount to be deducted from your income. This is saved, regardless of your day to day expenses and circumstances. People who continuously overextend themselves and spend more than they earn will find this principle very hard to keep to.

To save correctly, it is important to pay yourself first and take out an amount from the earnings you receive in your hand. Put this amount aside before you look at your day to day living costs. Unfortunately, there will always be an emergency, or something that needs to be bought, or an expense needing payment.

This will never change. Most people intend to save and they make all sorts of resolutions, but by the end of the month when they look at what is left, they are generally in the red rather than in the black.

The Secret of Saving
The secret of saving is to take out the amount to be saved first, as soon as you are paid. This amount should not be touched for any other purpose except saving, and possibly investment. It has to be deducted first because i...

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