Importance Of Saving Money

Saving Money

Thomas J. Stanley wrote this quote in his book The Millionaire Next Door. 1“Wealth is more often the result of a lifestyle of hard work, perseverance, planning and, most of all, self-discipline.” If saving money became a priority in a person’s life than that person could very well become a millionaire one day. By saving money, keeping a budget, and staying out of debt it becomes almost simple to become rich. The discipline isn’t easy at first but if someone worked hard at it than the task becomes easy. According to Dave Ramsey’s book, Foundations in Personal Finance, there are five foundations for saving money. Putting $500 in the bank as an emergency fund is one of the first things you will want to do. This money is never touched unless there is a major emergency. The next foundation on the list is to stay out of debt. Once you fall into the deep hole of debt it is difficult to get back on your

Some of the best budgets would be a Zero-based budget and an Envelope Budget. The Zero-based budget is simple when written on paper but harder to maintain. In the Zero-based budget someone will take his or her budget for the month and his or her monthly payment. It is then divided into different things, such as gas money, grocery money, and money to pay the bills. One important thing is to make sure that you put fun money in your budget so that you have money to spoil yourself with. The envelope budget is probably the easiest budget to handle. Things that will be written on the envelope consist of things like food, clothes, bills, and groceries. After the important things are listed on the envelopes the money is split evenly into the envelopes. The money is only used for whatever is written on the envelope, nothing outside of that. Using a budget is one of the best ways to help save and manage your