During these times in which global economic crisis and unemployment loom every industry in almost every country, it is expected that you have to live within your means. Or else, you will find yourself starving and live from the charitable support of the social welfare. You have to prepare for the worst because many economists and world finanial analysts predict that the effect of the economic downfall can be felt in the succeeding years to come. You can start by inducing youtself to curb your daily expenses and develop money-saving habits. You have to look for other source of additional income as well.
Must-Have Habit #1: Saving. Back to Lincoln's "a penny saved is a penny earned" axiom; yes, even pennies matter! A penny saved helps build the habit of saving. Every time you "save," you create a feeling, an inner sense of "building," and you strengthen a habit. If you SYSTEMATICALLY save, that feeling becomes pretty powerful. It has an impact on your self-image, self-esteem and self-confidence. If you SYSTEMATICALLY save, that habit becomes automatic behavior.
In the beginning, your saving activity may not mean much in pure dollars and sense. You may start just by putting "spare change" into a coffee can at the end of every day, and putting a tiny 1% of every paycheck into a savings account. That will take a long time to build up. But getting this habit working for you is what's important, regardless of the dollar amount.
Later, as you savings build, you can begin using more sophisticated investment methods, like Individual Retirement Accounts (IRA'S), mutual funds, and so on. In the beginning, very ordinary savings vehicles are fine. And even small but consistent savings, in ordinary mechanisms like bank savings accounts, can add up, thanks to "compound interest."
Must-Have Habit #2: Giving. The practicality of what we're about to suggest is, admittedly, mysterious--you might even call it mystical. We are not even going to attempt to explain it. But we will insist that it works. Every individual who tries this idea reports remarkable results.
If you have three apples and give one away to a hungry person, your "wealth" has decreased from three to two, right? On paper, yes. But in real life, the act of giving seems to increase wealth rather than to decrease it. The act of giving actually violates the math we learn in school. When people combine The Habit Of SAVING with The Habit Of GIVING, they seem to "attract" new job opportunities, promotions, raises, even money coming to them from unusual and unexpected sources.
You may want topic a favorite charity, your church, a local civic project, a food bank, a homeless shelter, whatever, and regularly and consistently give a small donation. Just like "paying yourself first," you might set a percentage, even 1% or 2% or 3% of all the money that comes to you. Each time you get paid, give even just $5. The amounts are less important than consistency and frequency.
Giving of time counts too. Your community is overrun with worthy, charitable organizations and projects in need of volunteers. Volunteerism is an American tradition that enriches everybody's lives.
Must-Have Habit #3. Self-Improvement. Whether through formal education or informal education: reading, going to seminars, people who experience increasing incomes and prosperity are always actively involved in self-improvement.
We are "TV generation." No previous age group has spent as much time watching television as we do. Now, we're not going to "bash" television. We enjoy TV just as much as anybody. We use TV for news, for entertainment, for watching sports, for information, even for shopping. But the person who uses the TV as an "escape" from real life...who flops in front of it as soon as they arrive home from work and stays there until the fall asleep...this person does himself a terrible disservice. Instead, some portion of your time should be deliberately and wisely invested in self-improvement.
When you stop to think about it, "YOU" are the only thing in life over which you have a great deal of control. "YOU" are the one asset that can never be lost or stolen. Doesn't it make good sense to invest and money in improving that asset?
Must-Have Habit #1: Saving. Back to Lincoln's "a penny saved is a penny earned" axiom; yes, even pennies matter! A penny saved helps build the habit of saving. Every time you "save," you create a feeling, an inner sense of "building," and you strengthen a habit. If you SYSTEMATICALLY save, that feeling becomes pretty powerful. It has an impact on your self-image, self-esteem and self-confidence. If you SYSTEMATICALLY save, that habit becomes automatic behavior.
In the beginning, your saving activity may not mean much in pure dollars and sense. You may start just by putting "spare change" into a coffee can at the end of every day, and putting a tiny 1% of every paycheck into a savings account. That will take a long time to build up. But getting this habit working for you is what's important, regardless of the dollar amount.
Later, as you savings build, you can begin using more sophisticated investment methods, like Individual Retirement Accounts (IRA'S), mutual funds, and so on. In the beginning, very ordinary savings vehicles are fine. And even small but consistent savings, in ordinary mechanisms like bank savings accounts, can add up, thanks to "compound interest."
Must-Have Habit #2: Giving. The practicality of what we're about to suggest is, admittedly, mysterious--you might even call it mystical. We are not even going to attempt to explain it. But we will insist that it works. Every individual who tries this idea reports remarkable results.
If you have three apples and give one away to a hungry person, your "wealth" has decreased from three to two, right? On paper, yes. But in real life, the act of giving seems to increase wealth rather than to decrease it. The act of giving actually violates the math we learn in school. When people combine The Habit Of SAVING with The Habit Of GIVING, they seem to "attract" new job opportunities, promotions, raises, even money coming to them from unusual and unexpected sources.
You may want topic a favorite charity, your church, a local civic project, a food bank, a homeless shelter, whatever, and regularly and consistently give a small donation. Just like "paying yourself first," you might set a percentage, even 1% or 2% or 3% of all the money that comes to you. Each time you get paid, give even just $5. The amounts are less important than consistency and frequency.
Giving of time counts too. Your community is overrun with worthy, charitable organizations and projects in need of volunteers. Volunteerism is an American tradition that enriches everybody's lives.
Must-Have Habit #3. Self-Improvement. Whether through formal education or informal education: reading, going to seminars, people who experience increasing incomes and prosperity are always actively involved in self-improvement.
We are "TV generation." No previous age group has spent as much time watching television as we do. Now, we're not going to "bash" television. We enjoy TV just as much as anybody. We use TV for news, for entertainment, for watching sports, for information, even for shopping. But the person who uses the TV as an "escape" from real life...who flops in front of it as soon as they arrive home from work and stays there until the fall asleep...this person does himself a terrible disservice. Instead, some portion of your time should be deliberately and wisely invested in self-improvement.
When you stop to think about it, "YOU" are the only thing in life over which you have a great deal of control. "YOU" are the one asset that can never be lost or stolen. Doesn't it make good sense to invest and money in improving that asset?
