Four Reasons not to Save

1. You like living paycheck to paycheck.
2. You plan on dying young and broke.
3. Why pay cash when you can use credit?
4. Retirement? No, won’t happen. Why? See # 2.

Seriously, you want to start saving, but, well, spending is fun…and easy. What can you do to change your habits? It starts with changing how you think.

When you add up payroll taxes, federal and state income tax and sales tax, you had to earn almost $2 for every dollar you take home and spend.

Next time something catches your eye and you think you have to have it, stop and double its price. Is it still worth it? Now, think about how much you earn per hour. How many hours do you have to work for that item? If your employer offered you this item or cash, which would you take?

If you decide you would rather have the cash, congratulations. You are on the road to creating a healthy new set of spending habits.

Now, take the next step. Open a savings account and each time you forego a purchase, transfer that same amount of money into your savings account. Within a few short months, you’ll be amazed at what you can accomplish.

The key to this strategy is to then use your savings to accumulate more wealth. We have all heard the saying “It takes money to make money.” Once you have even a little bit of money, take the time to learn how to invest. Investments could include real estate, mutual funds or something as simple as opening an IRA account. No matter where you choose to begin, when you start making your money work for you then you are actively choosing the path to financial independence.

Where did that path start? It always starts with spending less than you make. So don’t wait. Get started. Head to the bank and on your way there take a moment to answer the question, what’s an hour of your time worth?