Step #8: Simply Put, the Best Strategy to Save Money is to Save Before You Spend

You Need a Strategy to Save Money

Learn How to Save Money

Americans Have Lost the “Habit” of Saving

• Most Americans are two paychecks away from being homeless … because of consumer debt and a lack of financial reserves.
  
  
• 60% of all families have so little in the way of savings that they can only sustain their lifestyles for about 30 days if they lose their jobs
  
  
• A strange irony at work in America … the more incomes rise, the less we save! In 1980, the national savings rate was at 10% of income. In the early 90’s it slipped to 4% and today it is virtually zero! … all in a little more than 20 years!
  
  

A Strategy to Save Money is an Absolute Must to Obtain Financial Freedom and Health

• Savings keep us from making bad choices out of desperation … which often results in more debt
  
  
• Savings provide financial freedom from the trap of living paycheck to paycheck
  
  
• Able to enjoy the benefits of significant future purchases …
• College
• Home down payment
• Auto
• Travel … etc.

Saving Can be Easier Than You Think!

• Law of Guaranteed Wealth

  The law of guaranteed wealth states:

  If someone consistently and for a long period of time always spends less than they make, then they will be building savings every year which will continue to grow and will result in wealth.
  
  Click here for more on savings and the law of guaranteed wealth.
  
  

• Small difference between Surplus and Debt … what would you do with $41,000?

  The difference between over-spending $3.25 per day and under spending $3.25 per day in just 10 years at and average of 8% interest is over $41,300!

  This is the difference between buying your lunch versus taking your lunch ... or simply staying away from fancy coffee shops! The truth is ... we can all do this!

Critical definition … Saving versus Hoarding

• Saving = positive element of financial health
  
  
• Hoarding = negative element decreasing financial health

Specifically …What is the Best Strategy to Save Money?

• Must realize that saving is more important than “having things”
  
  
• Must really believe in the benefits of saving and practice the habit of saving before spending
  
  
• Must be
  • Regular
  • Planned
  • Predictable
  • Automatic- have the money taken out of your paycheck for savings before you even receive it
    
    
• Use a third party for discipline, convenience and accountability

Post this to the bathroom mirror!

Without adequate savings, we quickly lose control of our finances and it prevents us from attaining financial health

So, what do we do now?

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