The trick to being rich is to always save more and more. If you keep more coming in, and you're not spending it, it is literally a matter of time before you can afford anything you want. But in this land of instant gratification, a matter of time is too long. We want it now, and if we had it now, we would be so happy. So we take loans, or get on payment plans, and do everything we can to have it now. This is not the answer. The answer is to only buy what you can afford while saving.
I've heard a couple of different rules to go by when saving money. One is to immediately save 10% of every paycheck. Don't even look at it. Don't even think what you could be doing with it, and don't you dare blow it on a vacation. Just know it's there, ready for a wise investment after you have had some time to look at your options, while all along the money in growing.
Another is to only by what you could afford two of. I like this rule, though I haven't followed it in the past. It's extremely tough, especially when buying something like a car, or putting a down payment on a house. It's not for everybody, but if you have the will power to seriously live within your means, you can set yourself up for a life of financial freedom free of stress and budget headaches. Also, if something were to come up– say your son needs a Oprah-show surgery– you have a great pillow of cash when you really need it.
Anythoughts on these ideas?
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