#LRH70: HOW TO SAVE MONEY

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How to Save Money

If you had saved 10% of your income since you started working, how much money would you have right now?

Saving money is a skill. If you can save money, your chances of success and financial security are much greater.

A cash surplus has many advantages. For example:

• You can negotiate better purchase prices
• Emergencies and potential emergencies are less stressful
• You can help the people with their emergencies
• You do not feel as trapped by your job
• You have the option of getting into activities you enjoy and out of activities you do not enjoy
• You have more choices of where to live
• You can spend more time enjoying the activities you love, even if they produce no income
• You feel more secure

For most people, saving money is difficult. Perhaps your immediate needs are more stressful than your future needs. You may not have enough to cover current bills. Or you may prefer to enjoy your money now.

Even if you manage to save some money, you are tempted to spend it. Or you have an emergency or find something you really want to buy. You promise yourself you'll pay it back to your cash reserve, but you never do.

Saving money takes more self-discipline than most people have. It is difficult to put money aside each month into savings. However, most people can pay their bills.

The Key to Saving a Cash Surplus

"When a surplus is made part of the 'need' by disguised outgo, a surplus occurs. Only then will it occur. It will not happen otherwise." -- L. Ron Hubbard

If you are good at paying bills, you can also be good at saving money. You simply make your savings into a bill. You won't miss the money.

For example, you buy a house with a mortgage. A small part of your house payment goes toward the purchase and is "saved" in the real estate. It may not be much, but it is better than nothing.

Another example is to arrange a monthly debit from your checking account into a saving account. Any bank can set up a savings plan for you. This can work if you know you won't touch the money.

Certain credit card programs allow you to make monthly payments into an investment account, such as savings accounts with insurance companies or banks. The amount you authorize is automatically charged to your credit card each month.

You can pay money toward a future purchase by making an agreement with the group you want to buy from. For example, some colleges allow you to freeze the tuition, if you make monthly payments.

You can also sign up for your company's payroll savings plan or retirement plan. You tell your employer how much to save for you. Your savings is withheld just like your tax payments.

Even though opportunities to create a bill that becomes a savings account are not widely promoted, they are available.

Recommendation

Find one or more ways to disguise a savings plan into a bill or debt that fits your situation.

The amount you pay must not be so high that it becomes a burden. For most people, around 10% of their income is a good amount.

The need to pay the bill must be urgent. In other words, you pay it each month without fail.

The cash reserve must also be difficult for you to spend. For some people, a small penalty is a sufficient deterrent. For others, another person must control it.

Then look for a bill that will force you to save money. If none of the above examples fit your situation, talk to someone at your bank, at your job or at an investment company. You might also ask people who have made themselves wealthy as they may have several good ideas.

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