Saving - A trait of the wealthy.
The habit of saving is the single most important trait that determines whether we can build wealth and stay wealthy.
Our savings dictate our financial life and in a way the whole life too.
And the most notable article, published in the 1960s, by First Federal Savings and Loan Association of St. Petersburg, explains this in a way that has stood the test of time.
It is titled The Pleasure of Walking Tall, and a must-read on Savings.
The Pleasure of Walking Tall
Your savings, believe it or not, affect the way you stand, the way you walk, the tone of your voice. In short, your physical well-being and confidence.
A man without savings is always running. He must. He must take the first job offered, or nearly so. He sits nervously on life’s chairs because any small emergency throws him into the hands of others.
Without savings, a man must be too grateful. Gratitude is a fine thing in its place. But a constant state of gratitude is a horrible place in which to live.
A man with savings can walk tall. He may appraise opportunities in a relaxed way, have time for judicious estimates and not be rushed by economic necessity.
A man with savings can afford to resign from his job, if his principles so dictate. And for this reason, he’ll never need to do so. A man who can afford to quit is much more useful to his company, and therefore more promotable. He can afford to give his company the benefits of his most candid judgements.
A man always concerned about necessities, such as food and rent, can’t afford to think in long-range career terms. He must dart to the most immediate opportunity for ready cash. Without savings, he will spend a lifetime of darting, dodging.
A man with savings can afford the wonderful privilege of being generous in family or neighborhood emergencies. He can take a level stare into the eyes of any man . . . friend, stranger or enemy. It shapes his personality and character.
The ability to save has nothing to do with the size of income. Many high-income people, who spend it all, are on a treadmill, darting through life like minnows.
The dean of American bankers, J. P. Morgan, once advised a young broker, “Take waste out of your spending; you’ll drive haste out of your life.”
Will Rogers put it this way, “I’d rather have the company of a janitor, living on what he earned last year . . . than an actor spending what he’ll earn next year.”
If you don’t need money for college, a home or retirement, then save for self-confidence. The state of your savings does have a lot to do with how tall you walk.
There is no confidence that equals to the confidence that savings provide. Because the personal and financial lives are closely tied.
It shouldn’t be a surprise to say that, for every question regarding our financial wants, the answer for almost all those would be the same - Save Enough Money.
Want to clear debt? - Save Enough!
Want to create an emergency fund? - Save Enough!
Want to spend freely? - Save Enough!
Want to fund an own business - Save Enough!
Want to buy more gold or real estate? - Save Enough!
Want to invest more in a mutual fund? - Save Enough!
Want to buy more shares of a great company? - Save Enough!
In order to save enough money, expenses must be kept under check. At least 20% of one's salary should be saved.
The majority of us fail to save because we first spend and then strive to save. We ran out of money to save towards the end of the month. Our spending would never be able to keep up with our income.
It should be - save money first and spend what is left out.
Don’t save what is left after spending; spend what is left after saving - Warren Buffet.
High income might not guarantee a good financial life, but saving and spending frugally will.
Having enough savings allows us to avoid making poor judgments in times of need, and also helps to invest in a great opportunity when it arises.
Building wealth has little to do with your income and lots to do with your savings - Morgan Housel
All the initial steps in a financial life like being debt free, creating an emergency fund, and buying insurances are dependent on saving money.
Saving is an attitude towards money. An attitude of preserving the valuable commodity - money.
Save first, spend and invest next.
Peace out!