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I had to vent! Sorry but today I arrived home to find that the postie had attempted to deliver a recorded delivery signed for envelope to me but because a. nobody was at home to sign for it and b. the council had conveniently forgotten to frank the mail (sheesh!!) and it cost me £2.05 plus my valuable time to go and collect my parking permit!

Watch the video… it’s funny Will I attempt to collect the money? Yes, I will because it’s the principle of the thing that gets me in this case.

I read the following article today and it summarises so well what I have been saying from the time I had my own ‘aha!’ moment.  In essence, work more, save more, take on an extra job, start a side business and the quickest strategy of all…. spend less money! Read the rest of the article  below.

Since When Is Saving Money a Bad Thing?

The recession is turning Americans into penny pinchers. Seven out of 10 of us are cutting expenses, a Gallup poll says. And we spend only 86 percent of what we used to.

Just about every mainstream publication I read — including The Wall Street Journal and The New York Times — says this is a bad thing. But they are wrong.

The point they make is that if Americans cut back on spending and save more, new cars will stay on lots. Contractors will lose jobs. Lawn services will be let go. And stores will go out of business. 

So what’s wrong with that?

The fundamental reason for the financial mess we are in is that we have been spending more money than we have. Consumers have been doing it. Businesses have been doing it. And the banks and institutions that hold our money have been gambling it away.

The press wants us to believe that trillions of dollars have mysteriously disappeared from our economy because of this lack of spending. But that wealth never existed in the first place. It was an accounting fraud. The land, the buildings, the machinery, and our human capital, however, do still exist.

When your business is losing money, you cut expenses and work harder. When families run over their budgets, they do the same thing. So why should it be different with an economy? It’s not.

Spending more now will only make things worse. But if you take care of yourself, you will be doing more for the economy than the government could ever do.

So work more. Save more. Take on an extra job. Start a side business. And spend less money.

 

Thank you Michael. But tell me this… why do people listen to you and not to me? Maybe it’s because you’re a well known and published author… but as long as people listen to one of us, then we’ve done our job.

Here are my Top 3 Reasons Why You Should Save At Least Six Month’s Salary.

Reason Number 1:

If you are employed or self-employed,  your job is at the mercy of somebody else. Don’t delude yourself into thinking that management would never have to or want to release you and let you go. Your job is not cast-iron safe and neither are you. You are just a figure, a statistic, to your employer. Yes… I know… your boss is the nicest person on earth and he/she would never make you redundant. GET REAL… they don’t or won’t necessarily have a choice! Their job might be on the line too. Save 6 months salary (net or after tax) and you give yourself a massive boost of self confidence knowing that you’re ready for redundancy should it strike you.

Reason Number Two:

Living hand to mouth, feast to famine, is not good for you or your family. You earn a ton of money, have a great month, quarter or year and then you go spend it all! You need to iron out the peaks and troughs in your financial life. When you are doing well, put some away for a rainy day. When you’re not doing so well, you can take some out to help you survive your (hopefully) temporary crisis. Big companies do this in relation to the dividends they pay out to shareholders each year. It’s a trick called “smoothing”. So what’s stopping you from doing the same? Nothing.

Reason Number 3:

Sometimes in life opportunities come along that you just can’t miss out on. You might have a chance to buy an asset at a knock down price, but only if you have the deposit or the whole amount in cash. Buy that great car from a neighbour at a knock down price, possibly 50% cheaper than you’d get it anywhere else. Or buy an investment property that will, after 6-7 years, make you financially free, for only 15,000 down (and you earn 6% on that cash whilst the property is being built!). A no brainer in my book. But do you know the sad truth? Most people will never be able to take advantage of these gifts because they don’t have any cash in the bank.

I’ve just decided to withdraw the cash from my ISA account (earning a paltry 1% or less) and invest it in an overseas off-plan investment property. The developer will pay me 6% whilst it’s being built, then help me get a 70% loan to value mortgage, pay me a 10% rent guarantee for the first two years following build and then share with me (50/50) the net room rate earned. I am very glad I saved hard to have this money available.  I want the same for you too.

That’s why I have given you my Top 3 Reasons Why You Should Save At Least Six Month’s Salary.

You are responsible for your own life and should create your own financial security. It’s not down to Government, your parents, your spouse, your teacher, your priest etc etc. It’s down to you and you alone.

I’m on holiday in Gran Canaria and I’m lying down on the sunbed reading the latest Mens Health magazine. Lo and behold is an article all about finances. One of their top 10 entries in the article is all about something I’ve been saying all along… save up in a high interest savings account at least six months salary. That way if you do lose your job and find it tough to get another, six months should be plenty of breathing space for you.

Don’t delay this tip…. do something about it now. Go through your income and expenditure and see how much you can save towards six month’s worth of NET expenses.  The sooner you do, the sooner you’ll have the security of knowing that if you do lose your job, at least you’ll be able to pay the rent or mortgage, bills and have something to eat!

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