Saving Money is the SURE Way to Get Ahead
Have you ever considered what Benjamin Franklin accomplished in his lifetime? To be brief… he invested swim fins, bifocals, the lightning rod, the Franklin stove, and the first map of the Gulf Stream. He also improved the odometer and the catheter, and even had the correct theory that lightning was electricity (Biography.com).
If his inventions weren’t enough, he was a musician, a writer, a mathematician, and one of the Founding Fathers. After considering his many accomplishments, it’s ironic that one of his most famous quotes is seven words long:
“A penny saved is a penny earned”
Above his discoveries, massive knowledge, and understanding of complex science, he understood one simple, yet vitally important financial truth…that the number one key to building wealth and getting ahead with your money is…to save it!
Here is an interesting statistic for you: In 1975, the personal saving rate was nearly 17.0%. In 2005 it was below 3.0% and in 2015 it bordered around 5.0% all year long (Fred Economic Research).
This statistic suggests that we just aren’t saving money anymore, which is surprising to me. Collectively, we have more wealth and prosperity in this nation today than we ever have before, yet many of us are in worse financial situations than our parents or grandparents. Many of us have massive amounts of debt, yet not much saved for a rainy day.
Why is that? Because we have all forgotten this simple truth…that saving money is the sure way to get ahead. Yes, making more money can help; however, I know some millionaires who are broke, and a few that are broke that will have millions when they retire. Regardless of income, the concept is the same:
Those who sacrifice to save will always have enough for today and the future.
So with the New Year upon us, consider your current financial situation. How much are you saving? Can you give up something today, so that you can have more of it later? Can you go from being a saver to being a supersaver?
During the season of resolutions, I would encourage you to take a few minutes and make some financial goals. At the very least, make a goal to stop spending SO MUCH MONEY on frivolous things and instead save your hard-earned money and put it away for the future.
Consider your budget, make some goals, take a hard look at your expenses (and an even harder look at what you consider a need and a want), and then avoid spending.
Building wealth starts with this vitally important financial truth… save your money, and you’ll be better off, I promise!
Jacob Merkley is a full-time blogger who started in the accounting, financial, and retirement realms before switching to working online. Now he focuses on teaching others about Life Skills that put YOU in control, including the important principles of money management. He blogs over at PowerOverLife.