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$13,000 Savings Secret

Posted on: Oct 23, 2012

The $13,000 Savings Secret
Section: Student Personal Finance

Written By: Michael Stead

“Impossible! I must’ve added something incorrectly…This can’t be right…”    

This was the thought running through my mind as the number on the calculator seemed too good to be true.

I added up the numbers again and there before my eyes was the same number staring me in the face once more – $13,000.

At first I sat there dumbstruck by what I had done; however, at the same time I was completely blown away by the results of the simple strategy I had implemented only a year previous had yielded.

As I got over my shock and amazement, I realized that I had been following the number one most important rule when it comes to wealth building – Get richer every single day. 

So what is this strategy I’ve been alluding to? And how can you apply it in your life immediately to improve your results with your personal finances?

Although what I’m about to share with you might seem overly simplistic, please do not allow the apparent ease of this strategy to deceive you. What I’ve come to understand when it comes to money is that simplicity usually trumps sophistication and even though what you are about to learn may be easy to do, it’s just as easy not to do it and to reap the benefits.

The secret I’m referring to is the oldest rule in personal finance, yet so few people truly understand it and implement it…The technique is simply pay yourself first.

Simply put, this means that when you receive money you take a certain portion/percentage off the top and place it into savings and investments before you pay your bills and other obligations.

Now to supercharge this strategy even further, here is what I do each day and what I recommend you start doing today and every day here on out.

Each morning when I wake up, I take some money and I place it in what I call my “Financial Abundance Jar”. At the end of each month, I’ll then take the accumulated savings and place them into my investment account which I then use those funds to make investments that grow my wealth.

There ya go! It’s as simple as that!

If you follow this strategy as I have just described, you will grow richer every single day and start on the path to becoming wealthy and financially independent.

Now that you’ve learned this technique, here are your action steps:

1) Find a jar or container around your house and label it your “Financial Abundance Jar”.
2) Begin today by placing a certain amount of money that you can commit to into this jar every single day. The amount you put in the jar is not important. What is more important is the habit you are developing and the shift in mindset that will come as a result.
3) At the end of the month, take that money down to the bank and deposit it into a savings/investment account.
4) Develop the discipline to not touch or spend this money on impulse purchases.
5) Realize that this strategy will take some time for you to fully understand its power to positively impact your financial situation. Commit to this for one year, keep a record of your receipts, and sit back and watch as the money begins to pile up.

If you have any questions/comments/feedback about this strategy or about finances in general, please send me an email at mstead@student.concordia.ab.ca and I will respond to them personally.

Stay tuned for my next article where I’m going to show you how to properly manage your money so you can take what you just learned and put your financial results on steroids.