by Chris McCullough
Having been in banking for close to four decades, one of the most commonly asked questions I get is “how can I save money? It seems I spend every penny I make.”
The old adage that “it takes money to make money” is only partly true. There are some other factors at work that help in your quest to make and save money – education and a hard-work mentality are two life choices that could put you well on the path to financial freedom.
Now, there are those who are going to come back and say “I am educated and I do work hard but still can’t manage to save any money.” To that I say it’s time to take a look at yourself and your spending habits and see what choices can be made to save money and plan for the future.
Have you chosen the right occupation for yourself? Is there something bigger, something better out there for you and how can you go about striving for that job? Set a goal for yourself and work as hard as possible to achieve that job-related goal.
Are you living within your means? Quite often that is the biggest problem I see with people who claim they “can’t seem to save any money.” Building wealth takes discipline and sacrifice and it means you have to make hard choices. Stop trying to look wealthy and start trying to become wealthy.
Most millionaires are not big spenders. They are in homes they can afford, drive cars they can afford and watch their spending when it comes to clothing, vacations, food, drinks and entertainment. Are you doing these things?
If you eliminate a few sodas a week, a couple of expensive coffee drinks a week or unnecessary trips in the car, it will all add up and allow you to invest that money. Even if you start with a small Individual Retirement Account (IRA) or just open up an interest-earning deposit account – savings, money market or certificate of deposit – those are investments that will start your money working for you instead of you working for your money.
Chris McCullough is Rabobank, N.A. Vice President and Branch Manager in Murrieta. Rabobank, N.A. has 119 retail branches in California, including Murrieta.