Fortunately, some people are born into wealth and that is a fabulous thing! When people are born into wealth they are thinking differently. They have different views and values about life and money. They inherit money, businesses, homes, vehicles, land, assets, investments and payouts from insurance policies. From birth, they were taught what to do and how to carry on with their financial status. Wealth is passed down from generation to generation. That’s called generational wealth.
Now if the rich don’t do as they are taught and handle their finances accordingly they can end up in a financial crises. They have a choice to continue their wealthy legacy through educating themselves with the concept of saving and investing or lose their family’s hard earned established wealth with making bad choices on finances.
The poor to middle class families aspire to achieve financial success. In this article we will cover the fundamental concept for saving, and tools that can help poor to middle class families on how they can achieve financial stability and success. Our hope is that our readers can pass on the habit of saving and investing to younger generation as they start to earn money and become financially independent.
First, the most important ideal is to set the typical goals of saving and look forward to them. The recommended savings is 1/3 of your salary must be secured in your savings account. If you cannot afford a third of your salary, set aside an amount that you can afford. But be sure to set money aside in the three digit number every pay period, and develop a habit to live without that money. Trust us, you will learn to adjust overtime.
Second, don’t live beyond your means. Don’t try and keep up with the Joneses, buying the latest trends of clothing and apparel. These marketers have targeted individuals such as yourself, to attract you to the “latest and greatest” of the same version of what you have previously purchased. Abstain from impulse buying! Remember this, The Joneses, only look good on the ‘outside’ while often their priorities are screwed up in their personal lives. Stop making the clothing companies, shoe designers and car manufactures more rich, trust us they’re already wealthy and will continue to be with or without your individual purchases. These small minute changes are designed to better your future.
Third, usually, people spend compulsively because they are bored. Quite frankly, it is a misconception that shopping is a hobby. A hobby should be least costly, and should not be a contributing factor to why you may be living paycheck to paycheck. This is not the American way. Place a great emphasis in your life to be creative and give your gifts to this world and the people in it. Your gifts could consist of your time (time is money), through volunteering in your communities and helping out others in need or planet earth. Other hobbies maybe arts and craft, creating something out of nothing and turning profit by becoming a seller on Esty or eBay . If you have spear time, try adding to your income by becoming a driver for Uber or Lyft , this can occupy your free time, and keep you from overspending. If you are into physical activities try working out and getting in better shape. Finally, there are so many free activities available online, look them up and start visiting new places you have never been.
Get to know the world, and stop paying for it. It’s a free life, enjoy it! Keep your hands away from your wallet and savings account, let it build and ultimately it will work for you.
Quick Video: Suze Orman: To really save money, do this…
Video Courtesy of HLN.com
- Make a commitment to yourself, start doing things different with your finances.
- Check your checking’s account weekly; don’t be afraid to look at it.
- Open a savings account for yourself.
- Have a portion of your paycheck automatically deposit 1/3 of your salary into your savings account in addition to your 401k plan (or other Retirement account 10% recommended).
- If you have children, open a savings account for each of them separately. It’s ok to open one account and then when it’s time to cash out, divide it among the children.
- Follow these basic 101 saving tips & you will be on your way to financial freedom in no time!
- Get into the Stock Market either through Fidelity, E-Trade, or newest Stock Trading Tool RobinHood. Set your account up for bi-weekly direct deposit into one of these account holders. You can deposit as little as $50.00 every two-week. Sit back, and watch your money grow over time.
“Empowering You To Build Your Empire!”
For further reading, check out:
- 7 Creative way to save for your wedding
- 10 Ways to Save, When your Making minimum Wage
- How I Learned to Be Happy, While Living Beneath My Means
- 100 Great Ways To Save Money