3.5 Ways to Develop a Habit of Saving Money

August 5, 2023 by Charles Fitzgerald Butler

Are You Saving Money?

Developing a habit of saving money requires self-control and self-discipline. If you don’t think it is important try to get a mortgage or car loan and see how well you do. According to the Huffington Post, 50% of Americans have less than $500 in their savings account. How can this be when we are one of the richest countries on earth?

If you don’t have a savings account and/or an emergency fund it’s your fault. According to some financial experts, you should save 10% of your income. If you have been working for 10 years at an average income of $46,000 per year according to statistics. You should have $46,000 liquid cash in your savings account.

I am not speaking about 401k’s, pensions, or other retirement plans. I am talking about cash money. You are redlining your finances if you don’t have an emergency fund of at least $1000. You risk going into debt when unexpected emergencies happen. Ideally, you should have 6–9 months of emergency funds stashed away. Invest the rest of your cash in income-producing assets.

Rock Bottom my Experience

In 2006 I hit rock bottom. I was broke and looking for a job and I couldn’t sell a house. Guess who lost his investments and was living off borrowed money? I knew about paying yourself first and I read all the books but I did not practice what I learned. I cashed in my 410k and lived off that until those funds ran out. If I would have established a habit of saving money, I could have survived the real estate downturn.

I found a job with benefits and vowed never to go broke again. Five years later I still carry around the first $10 I saved from my first paycheck. Developing a habit of saving money has helped me grow my real estate and online marketing business. I love saving money now. When opportunities arrive I can take advantage of them.

You as a home-based business owner need to develop a habit of saving money. There are opportunities abound when you have access to cash. Lenders are more friendly. Investors come knocking when you show a habit of saving money. Saving is a discipline. You must delay gratification. You have to cut back, eliminate…