Paradigm of Saving Money

Wealth starts with a good paradigm / habit on saving money.

People do not have Savings because of their paradigm on saving. This paradigm had been handed over from generation to generation and had been proven over and over that it is not effective in one's goal to be wealthy or one's goal to save money.

Scenario of old and current paradigm:

When someone receive their salary, the first thing they do is to spend, go shopping's, treat their friends, buy new things and gadgets, pay bills, pay debts, etc.. 

They spend first and what is left, if there is something left, for savings. 

Expenses is always higher than income, and most of the time, people live beyond their means, they are in debt most of their lives. When someone loan for money, most of the time its is for expenses.

If we'll put it in a mathematical formula, it will be:

small INCOME - high EXPENSES =  zero SAVINGS

Old Saving Paradigm: 

 INCOME - EXPENSES = SAVINGS

Building Wealth needs a paradigm shift and it is a good start to start in building a saving habit.

We need to change our saving paradigm because if you do not, the next generation will be having a hard time changing. It need to start from us now.

Rich are getting richer because their old generation handed them the new paradigm shift and they will keep getting richer because their new generation adapted this new paradigm. 

If we dream to gave our family a good life, free from financial troubles, we need to adapt to change. Make a paradigm shift to be wealthy.

Build a NEW Saving Paradigm: 

INCOME - SAVINGS = EXPENSES

When Income comes, Prioritize your Savings. Pay yourself first before anything else. You work for it and you deserve to keep something for yourself. At least keep 10-20% of your Income.

Now, "Pay yourself First", this do not mean that you will spend 20% of your Income for yourself. It simply means that 20% of your Income is for your own savings.

Save for you "Retirement Fund". 
Save for your "Healthcare Funds".  

Do you Have one? If you do not have, start saving for it, so when you grow old, you can support yourself financially. 

When we grow old, Its hard to rely to our children for financial support, because by that time they have a family of their own. And its not our children's responsibilities to take care for us when we grow old, its the parents responsibilities to take care of their children's.

While we still have the Time, Lets start Saving.
While we still have the Strength, Lets start Saving.
While we still have the Health, Lets start Saving.
While we still have the Capacity to work, Lets start Saving
While we still have the Job, Lets start Saving.

"If you will not save now, when? if you will not save for yourself, who will?"

The important thing in life is not on how big your income or salary is, but how much money you save.

Here's another Saving Formula that can be use:

10% for God + 20% for Savings + 70% for Expenses

All what we have and all what we are came from our father, Our Lord, Our God above, 10% of your Income or Salary is our offering to Him. Or you set that for charity. 20% of your Income to pay yourself/Savings and the 70% of your Income is your budget for all your Expenses.

Making a paradigm shift is not easy, but it is possible. We Just need to build that attitude of adopting to change, the Attitude of saving.

Here's also an interesting topis on savings from babycentre.co.uk

 10 easy ideas for getting into the savings habit

     1. Pay yourself first
     2. Keep track of your spending habits
     3. Find a good deal
     4. Motivate yourself with a goal
     5. Start a loose change jar
     6. Put away surprises
     7. Pay off your debt
     8. Pretend you're still paying off a loan
     9. Open a savings account you can't touch
   10. Make saving a challenge



Having the paradigm shift, the right attitude, the habit of saving will not get us to be wealthy but it is a start toward that goal.

 

Pesos And Sense Explains: Tips on Saving

SAVING TIP - 1





SAVING TIP - 2