The Simple Rules of Money #1


Save as much as you can.

The #1 rule of money. Saving money is the most
important thing to do.
Back in the old days when I was a wealth manager for ultra-high net worth individuals ( having $10 million or more in assets with my firm), I noticed the primary reason how my clients earned their ultra-high net worth status, was by saving. Yes, there were other ways my clients got rich in unique ways – some just got lucky, some inherited  it, some won it through divorce. But, most of my clients got rich because they had saved their money.
Household debt in the U.S. including credit card debt is the highest it is ever been – and it’s rising!
According to one financial site, in a 2017 survey of 8,000 of Americans across the U.S.More than half of Americans have less than $1,000 in savings. 39% of survey respondents said they had no money set aside in savings at all! Let’s not be part of that crowd.


WHY SAVE

There are many reasons to save, but I’m going to detail 4 of the big ones.
Get out of Debt
If you want to get out of debt, you need to have money saved. You can’t pay down debt with more debt. You pay down with cash. Your credit cards are never going to get paid off if you have to keep using them. Sometimes, we have no choice but to use credit cards when an emergency occurs and they often do.
Emergencies
We hope that emergencies won’t happen, but they do.  A family member can develop a health issue, you might need to make an emergency trip somewhere, bad weather or something unexpected could damage your home, etc. Emergencies can be expensive, so why not be prepared?
Buy a Home
With stricter regulations, most banks won’t lend you money to buy a house unless you have a down payment. And at this time,  you are not allowed to borrow a down payment. That means you must have this money saved up (or have someone give it to you.
Financial Independence
A goal of most working people is to retire someday, preferably as soon as they financially can. One determination whether you can retire or not is how much do you have saved.  While certain people can live on much less money than others, having savings means calling your own shots, and having the freedom to make choices in your life separate from earning a pay check or relying on Social Security.
This may means retiring when you want to rather than working because you have to.
Financial independence isn’t the same as being rich, but not having to rely a monthly check is what it takes to become “rich,” no matter how you define the term.

HOW TO SAVE MONEY

When I was a boy, my grandmother had a jar that she put loose change into. When the jar was filled with coins, we rolled up the coins into easch of their donimiations and went to the savings bank to deposit the money into her savings account. Sometimes it was a chore to roll up all those coins, but after went to the bank, my grandmother would usually buy me an ice cream cone. That was good enough for me!
The Traditional Way:
The way that has been around since banking began is by finding a bank that offers a savings account, open up a savings account, then every time you get money, you put it into the accounts for a specific thing that you are saving for. This way you can keep your money safe from accidently being spent, and it will be there when you need it. While this method obviously still works, modern technologies have made it easier and given more creative ways to save.
The Way of Saving in the Year 2018 and Beyond:

Put your savings on autopilot and forget about it.

The easiest way to save is to do so while not having to think about it.  All you need to do is spend a few minutes to set your savings plan up and then you’re done. These companies will help you save and pay you to do it!

1) Chime Bank. 100% Free. FDIC Insured up to $250,000

$50 Bonus for Opening a New Account

Chime is a mobile-only bank and has a savings account and a spending account option. It wants you to use it’s APP and you should because there are a lot of features on it. When you buy something with your Chime bank card, Chime rounds up the amount to the nearest dollar and deposits the difference in savings. You can also enroll in direct deposit to have funds automatically sent to your account for free. Chime makes it’s money when you withdrawal from certain ATMs. One way to avoid this is to avoid the ATMs that charge fees.
It has no monthly fee and no minimum balance requirement. It also offers: Instant cash rewards, no foreign transaction fees,  access to over 30,000 fee-free MoneyPass ATMs – find and use those.

2) Qapital. 100% Free. FDIC Insured up to $250,000

$5 Bonus for Opening a New Account

Funny name, but a very useful and fun saving APP that also auto-rounds up purchases you make (just like Chime) and deposits it into your Qapital savings account. It is 100% free to use, deposit, withdraw, get a free debit card and more. They make their money though debit card transaction fees.  Again, always try to find ATMs that do not charge fees.  Your money is stored at Wells Fargo Bank, FDIC Insured up to $250,0000.

ONE LAST THING – Start Your Emergency Savings Fund Right Away

Without question, if you do not have one, create an emergency savings fund right away. I discussed some of the emergencies that can happen at any time, but there are so many more. Life happens, but that does not mean you cannot be prepared for it.  Start today by setting aside a little money each pay check until you have an emergency savings fund of at least $500 to $1,000. If you receive a bonus from work or an income tax refund, use that to get you started or to add to what you’ve already got set aside. Set up direct deposit at work to have money auto-deposited in your savings accounts.
As life happens and you need to dip into your fund, build it back up. It takes a bit of work, but it’s a habit worth getting in to.

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