You may remember I did a blog a little while ago on budgeting and the importance of budgeting brilliantly. Ever since I wrote that blog I have wanted to address the problem many people have of spending over saving.
Someone once told me – “life isn’t about what you earn it’s about what you save” and I think this statement is so true. If you earn a lot of money and just spend it all, you will be no richer than the person who made less money than you but knew how to save.
As the money you are making goes up your spending doesn’t have to go up with it! Sadly for many people when they get more money they decide to take on finance deals, sign big contracts or mortgages for property and buy brand new big ticket items without shopping round for the best deals.
Those of you that are in a fortunate place of earning good money, I implore you to plan for the future, as there is no guarantee that you will be making this money for the rest of your life. If your earnings do take a hit like if you lost your job or your company started seeing tough financial times, the companies that have given you credit are still going to want their money and you are still going to have to find a way to live.
I’m not saying don’t go and enjoy life and the rewards of your hard work, I’m just saying make sure you are prepared if life were to change in an instant. Have savings so you can live your retirement years as well as you lived your years in employment. Money can come and go but if you learn good money management skills they will never leave you and you will be able to deal with whatever comes your way.