Saving
Why is saving money so important? How do you do it so it becomes a monthly, yearly, and decade long habit?
Why is saving money so important? How do you do it so it becomes a monthly, yearly, and decade long habit?
It’s important so that you can have an emergency fund in case of catastrophes, a retirement fund, and money set aside for fun things. Saving money is important to achieve financial freedom. You can do this by automatically having a certain amount of money deducted from each paycheck.
Pay yourself first!
You ladies hit the nail on the head with your answers. Let’s review. Saving consistently (automate it so the money comes out every month without any physical effort by you) each and every month (pay yourself first before anyone else) will allow you to live below your means (spend less than what you earn minus your tax withholdings). This is important in so many wonderful ways.
This ability to save will provide you passive income (your money making money) as you invest wisely (no-load index mutual funds) in stocks, bonds, and Real estate all over the world. Gradually, your passive income will rise and one day it may just grow larger than your monthly earned income. At that point, it might be time to escape. Escape? You leave the world of work to live out your dreams!