Developing the Savings Habit

Posted on August 27 2008

“The borrower is servant to the lender.” —Proverbs 22:7

You do not have to be a Scrooge or a miser to spend less than you earn. America’s in-debt culture has many addicted to spending more than they earn. You can turn that around by deliberately spending less than you earn, and saving the rest. That way instead of being in-debt, you’ll be in-accumulation.

Many entrepreneurs have launched their careers by taking that first simple step of spending less than they earn and then saving the rest. The savings nest egg then provides the capital with which to start a venture, be it profit or non-profit.

The savings habit also brings peace of mind. Instead of worrying about all the bills you have, you have the security of knowing that you have a savings cushion in the event of an emergency. The next step after savings is investment—putting your money to work in a way that is interesting and even educational.

Many employers have automatic payroll deductions for savings plans. Saving a fixed amount a month is a good way to develop the savings habit. Finally, as you see the benefits of savings, you may come to enjoy that more than spending. It gives you more control over your life and develops a healthy self-discipline which can spill over into other areas of your life.

Be different. Many are consumers, but far fewer are accumulators.