For some people it comes so easy... while for others it borders on compulsive as they are so obsessive with it. "But there must be some easy way for a decent balance" I thought... "maybe one day I'll find it".
Well lo and behold I went to T. Harv Eker's (author of the best selling book "Inside the Millionaire Mind") "Millionaire Mind Intensive" 3 day event last November 2007 in Ft. Lauderdale, Florida and it changed my financial life in so many ways. The simplest of all ways is that I finally learned how to save. He has a very simple formula...
Use jars.
So I went to my local 99 cent store and bought 6 plastic jars and labeled them as follows:
1. FFA 10% = Financial Freedom Account (to be used only for business and retirement).
2. LTSS 5% = Long Term Saving for Spending (on big ticket items (I'm using mine for a 42" flat screen TV for this coming Christmas)).
3. NEC 75% = Necessities like Rent/Mortgage, Groceries, Gas, Clothes and other ongoing living expenses.
4. EDU 5% = Education (one should always be learning, I use this for buying books on Amazon).
5. GIVE 0% = Charity (instead of giving 10% to charity I give items and my time to goodwill). I use this jar to put all my fortune cookie notes, quotes, and positive notes to myself.
6. FUN 5% = T. Harv Eker says if you don't make room to enjoy yourself you will sabotage your saving efforts and I find that to be so true... I use mine once each month for movies, a night out dancing at a cool club, playing pool, a Miami Heat Basketball game, massages, a nice lobster dinner, etc... There is so much to do here in South Beach, Florida as it's a really cool resort town with fantastic beaches.
You can change the percentages around to suit your particular situation as needed.
Well here's the MAIN thing, you must put money in at least one of the jars every single day, even if it as little as a penny. This is to get you thinking about good finances... saving, etc on a daily basis as most of use focus on bills too much we need a counter balance.
Also every pay day we need to split the money up in each jar (or if you prefer have separate bank accounts for each and put a piece of paper with the amount you placed in the bank account in each corresponding jar so that you can keep track). That's it.
So if you get paid weekly... you need to do this weekly.
Wow it really worked so far for me... sometimes I forget but I'm really on top of my savings now for the very first time in my life.
Another great tip T. Harv Eker gave was to write down every penny I spend each month... I have this down to a science so much so that I created a form just for that with the 6 labels above and everything... My financial life is so much better now I can focus on things like this blog and buying a home.
Another tip I got from T. Harv Eker is to rejoice and be happy every time you find a penny in the streets and pretend you found a million dollars. I do this every time I go out site. Lots of people don't bother with pennies. I'm not one of them I rejoice each and every time I find one.
If you have trouble saving you should give this simple yet quirky way of saving a try and have fun with it... I always do... especially when I'm using my FUN money each month.
Do you have any cool or interesting way to save??? Please do share it by making a comment below.
Will write again soon,
S. A. Williams AKA sawnet [your RPM Millionaire]
http://www.RPMwealthClub.com
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