By Terry Camire; Clever Contributor and Career Development Professional.
I’m financially secure now, and I retired early, but I could have reached both of those goals sooner if I had known how to save money and the two common financial mistakes most people make every day.
It is a silly thing to do, but many of us throw money away almost every day. Furthermore, most of us would eventually be millionaires if we just stopped doing it.
One of the biggest financial mistakes I ever made in my life was not paying myself first. To do this, as soon as you get your first job, put 10% of your pay away in a savings account and forget about it until you retire. Pretend you never got that money – You simply do not have it! It’s not for emergencies, education, health costs, bills, or anything else you perceive to be important. Simply save your money!
I repeat: you DO NOT HAVE that money! It’s not yours! It is not available to you … for anything! Nothing!
If you do this one thing and stick to it, retiring rich is a virtual certainty.
Don’t copy others.
The next thing I did wrong was trying to imitate my parents. They were successful, so why not, right? But just think; knick-knacks, for example, were popular at one time, and my mother loved them.
From the minute I got my first apartment, I started to fill it up with knick-knacks. I thought knick-knacks made a home. The bigger my place got, the more knick-knacks I bought. Through the years, I blew a fortune on knick-knacks. They served no real purpose, and I dusted them for decades, only to eventually sell them off at huge losses, or throw them away.
If I had all the money I spent on worthless knick-knacks, I could take a world cruise today, or buy a yacht. And that’s only ONE example of how trying to imitate my parents led me astray financially.
Do you need it?
Are you using paper towels instead of a reusable cloth to clean up small spills? My mom did. Do you use air fresheners in rooms when opening a window would do? My mom does.
I think you get my point. If you simply THINK before you buy, you’ll be amazed by how many things you can do without … without suffering at all.
Before you buy, ask yourself if you could get by without that item until next week. If the answer is “yes,” don’t buy it! Put that money in a jar until next week. Chances are, by the time next week rolls around, you’ll have forgotten you ever wanted it, and if that’s the case, put that money in a bank account and leave it there. Before you know it, those weeks will turn into years, and you’ll be ready to retire … rich!
It all comes down to the old saying;
‘If you look after the small things in life the big things will look after themselves’.
Make sure you look after the small costs in your life and the big money will be there for you when you need it.
Clever Contributor: Terry Charles Camire;
Career Development Professional