Philosophy of Savings Success
“Money looks better in the bank than on your feet.”
Out of sight, Out of mind
Pay yourself first
I cannot be trusted
A Pretty-Good System for Savings Success
Rule 1: Immediately transfer 30% of every paycheck into a savings account
Rule 2: Give myself the option to buy something for every $2,000 saved.
Rule 3: Never spend savings-account money.
Rule 4: Never feel guilty about “not saving enough.”
The Positive Side-Effects of Saving Systematically
I don’t need goals as motivation.
- Goals don’t encourage the habit of saving. Systems reinforce habits.
- Goals rely on emotions and materialism. Systems rely on consistency and reason.
- Goals feel like a temporary sacrifice. Systems are a way of life.
- Goals depend on being unsatisfied with my standard of living. A savings system allows me to consciously choose my standard of living.
- Goals leave me thinking, “I could have saved more.” A system guarantees that I think about saving as little as possible, which allows me to better enjoy the money I choose to spend.
I am forced to make an honest (not idealistic) budget every month.
I can actually say “I don’t have enough money for that.”
“Save money and money will save you.”– Jamaican Proverb