How to Save More Money – Jerry Fetta
In our culture saving is a unique word because it has multiple meanings.
Meaning #1 refers to trying to buy something at a lower price than expected. It basically refers to getting a “good deal”. Meaning #2 refers to withholding a portion of one’s income in order to accumulate an amount of cash. We are talking about meaning #2 today and not meaning #2. I will briefly address that a person cannot get wealth with meaning #1. Saving $3.00 on cereal or getting gas at the pump that is $.04 lower than the others does not make a meaningful effect in wealth creation.
The 1st way to save money is to earn income. Pretty simple, right? But ultimately, if there is not income, then there is nothing to save. Income is created by trading time, products, and services with another human being in an exchange of value. We must be able to increase this income to have enough left over to save. A lack of income causes most people to revert to saving via meaning #1 (saving $3.00 on cereal) because there is no other money due to the lack of income.
If we have income, the best way to save is first decide we want to and then set a target. Somewhere between deciding to save and setting a target lies the thing you are saving up for. Don’t make it a rainy day. Make it a tangible object that either raises your personal wellbeing or contributes to giving you more time back in your life. I recommend my Wealth Coaching clients set a 40% savings rate target. Saving 40% of their gross income every month. Big number, right? That takes us back to the income piece. We cannot save 40% of our income and live on $5,000/mo. If you think about it, the 40% savings target is really a challenge to earn $10,000/mo. or more because it will be virtually impossible to do with any amount less than that. Set your target high and commit to the level of action it will take to get there.
Lastly, set aside that 40% savings like the government does. You see, even the government, the most untrustworthy group of people in existence, does not trust us with our own money! They know that if they don’t take our tax money out before we get paid, we will have spent it all. You should operate with the same mindset. Now take heed, this money should NOT go into a 401k or an IRA. A mistake like this relinquishes control of your money to an untrustworthy group of highly paid strangers until you are 59 1/2. We don’t want that. So as soon as you get paid, you should flow 40% of your gross income into a sacred account. I personally use and recommend the Bank on Yourself savings strategy as the best vehicle for this. Committing to this amount and then making that regular monthly payment creates a forced savings effect. The result? You will have money saved no matter what.
The most effective savings strategy is the one that you will DO. My team of Wealth Coaches can reduce your overall insurance and investment costs by 50%, guarantee an increase in your savings rate, and help you secure an 8- 12%.
Jerry Fetta is a husband, son of Yahweh, Entrepreneur and owner of 5 privately held businesses. Jerry lives in Alaska with his wife and 2 dogs. His no -nonsense approach to business, finances, and life speaks truth and provides clarity to his clients and followers. His personal mission in life is to empower millions of leaders to own their God-given, ultimate potential.
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