If you want to save, whenever you receive money, don’t start spending hoping that you’ll save what remains. Normally what remains is zero because as long as money to spend is available, the numerous things you can spend it on are also available. And things to spend on even incite their ‘relatives’ so that you spend even more than you had planned. When money to spend is not available, we naturally find a way of doing without it.
Automatically directing part of your income into an investment account is a great way to solve this. Once the money is sent there, you assume you no longer have it. Before you spend any money, put your savings and investments aside first, then spend what is left after saving or investing. Putting such monies aside as immediate as possible is what the rich refer to as “paying yourself first”. It could be one of the best decisions you ever made.
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