If you?re like most people, you probably feel like you never have enough money left at the end of the month to accomplish all your goals?despite your best penny-pinching efforts. And there?s a very simple reason: you?re saving backwards.
Instead of saving what?s left after spending, spend what?s left after saving. See the difference" That?s how the money pros approach building wealth.
Ready to start saving like a pro" Just follow these four tips:
Tip 1: Pay yourself first. We touched on this above. You work hard for your money so make sure you pay yourself first ? enjoy that reward! A vacation, or a new entertainment system ? for example ? are great examples of ?pay yourself first? short term goals. Fund these goals by putting a small amount aside every month into the right type of savings account. Do this for six months to a year ahead of making that purchase. It?s that simple. Tip 2. Set Mid-, and Long-Term Goals: As we get older we take on more responsibilities, which can make it hard to enjoy life while still saving for the things we want, like a home or a comfortable retirement. But you can?t prepare for something without a plan so make sure you set mid- and long-term goals. Putting a small amount aside monthly for 5-7 years will set you in good stead for a mid-term goal such as a down-payment on a home. A long-term goal such as retirement requires planning too?but given the long-time horizon on this investment some flexibility can be applied to this type of...