The Best Ever Solution to Save Money for Salaried Employees: Not having enough savings in the bank account is one of the biggest problems that majority of people are facing in India. Especially the youth.
Living on pay-check to pay-check and relying on the credit cards to pay even for the basic amenities of life is a common scenario nowadays.
But how can we solve this problem? How can a salaried employee save enough money to buy his dream car or dream house, without being a cheapskate or without cutting money on coffees?
The answer is simple. I’ve been implementing this solution for a long time since the pocket money’s in my college days to the paycheck that I get from my first job.
And the solution to save money for salaried employees is
“Pay your self first”
Now, this is not a new concept and in no way, I want to take credit for sharing this notion. I read this concept for the first time in the book ‘THE RICHEST MAN IN BABYLON’ by George Clason. Then I found the same concept of saving money in Robert Kiyosaki’s book ‘RICH DAD, POOR DAD’.
If you haven’t read the book ‘The Richest Man in Babylon‘, I highly recommend you to read this book. It is one of the best classic personal finance book that I have ever read.
The idea is simple
Keep a fixed part of your salary for yourself. Say you keep 3/10 or 30% of your salary for yourself only.
You are not giving this to your landlord, or to the automobile company for your bike/car EMI, or to Dominos to eat a pizza or to anyone else. You keep this money only to yourself.
Nonetheless, you can spend the rest 70% of your salary in any way that you want.
I am not asking to not to go to a party or to eat in the cheap restaurants or not to renew your Gym membership. Enjoy your life. Saving few bucks by not drinking a cup of tea/coffee won’t make you a millionaire.
Just do not party with your 30% share of income that you kept for yourself. You have earned this money after a lot of hard work and you deserve to pay yourself first.
Keep this money with you only. It’s not your liberty, it’s your right.
Quick note: Saving money is just the beginning. If you want to become a millionaire, you have to start investing in the right way. Nevertheless, how to invest is a topic to discuss in another post. In this post, I just want to focus only on the first step to get rich. And this can be done by saving money. You can’t invest if you do not saved first.
(Please do not be this guy ;p)
That’s all. I hope this solution to save money for salaried employees is helpful and you can also start saving from today. If you liked this idea, please share this post with at least one of friend who needs to learn the concept of paying yourself first 😉
Kritesh (Tweet here) is the Founder & CEO of Trade Brains & FinGrad. He is an NSE Certified Equity Fundamental Analyst with +7 Years of Experience in Share Market Investing. Kritesh frequently writes about Share Market Investing and IPOs and publishes his personal insights on the market.
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