Note: The topics presented here represent an informative opinion. It is not to be interpreted as personal advice tailored to your specific situation.
To become wealthy, you need to follow the laws which will make you wealthy. When you adhere to the laws of wealth accumulation, you will become wealthy guaranteed. This first lesson on learning to save is about building the foundation for your wealth accumulation.
Learn to save.
Of every €1,- you earn or receive:
The first 10% is yours to keep;
The second 10% is to pay of any debt. If you don't have any debt, put this amount in any of the other savings jars;
Another 10% you reserve for larger (necessairy) expenses and (foreseen and unforeseen) replacements;
Yet another 10% goes into your 'Go To Hell'-fund. It protects you against forced labour and empowers you to make great decisions without fear;
The final 10% goes into your 'Blow-It' jar. You may spend it freely on whatever you want;
Learn to live (pay your bills, buy food and clothing, pay taxes etc.) on the remaining 50% to 70%.
To be clear, that means that you pay your daily life, hobbies and expenses from the remaining 50%. So you cannot 'withdraw' or 'use' money from any of the 5 saving categories to 'finance' your regular expenses. Forbid yourself to touch the money in the savings accounts for other purposes than the savings account was set up for.
If you absolutely cannot save 10% now, try 9%, or 8%… or even as little as 1% ‐ as long as you start saving! And build your way up to 10% from there.
To build wealth, you need to teach money you receive that you care for posessing and using it wisely. Building wealth therefore starts with learning to live on less than you earn.
Until you're already saving using the income division rule from the scheme above, you won't really understand the power of the necessecity to save. Instead, you'll probably think "What a nice idea and I understand that it works, but…" and act accordingly (by NOT saving). As a result you will be stuck at your current financial level forever for the price of being a 'smart ass excuzer'. Take responsibility now for your financial future and start to save.
With money comes the power to 'buy' your freedom.
With money comes the possibility of walking away from the things you do not like.
With money comes the option to multiply your wealth and have even more money.
With money comes the choice to get what you really want.
At the very least with money comes the ease that you do not have to worry about having no money all the time.
With learning to save comes the action to save. When you start acting to save, you begin to form the habit to save. When saving is your habit, you'll become wealthy. And only when you started to save, you can proceed to the next lesson.
How to save in real life?
It is as simple as applying the income division rule for every (net) amount of money you receive in any form or way. I say net amount, because the tax man first steals part of the gross money you receive (sometimes up to 50% to 60% of your earnings!). This is called income tax.
So let's assume you get your (net) salary into your payment bank account or in cash by your employer.
There are two ways:
Saving using your online bank account.
Saving using real cash jars/boxes.
You can choose one or the other, or both at the same time.
Saving 10% to 50% as easy as cutting an apple into 6 pieces.
Step 1: count the money you receive
Step 2: put 10% of that money into box 1 / savings account 1
Step 3: Repeat step 2 for the 4 other savings categories
The remaining balance on your account or cash in your hand you keep to pay bills etc. Therefore you keep it in your wallet or keep it on your bank payments account.
The tax man will probably steal some more money depending on the country you live in. The state calls that wealth tax.
If you're out of cash or money before you 'receive' the next income payment, you'll have to do better. Learn to lower your expenses and increase your income, to not run out of the 50% remaining money. You can do it by carefully making choices when you need to spend money, as to cut costs. You can do it by carefully demanding more income (by doing the thing that will earn you more income).
Everyone can learn to save. You can do too. Attract riches, wealth and freedom. Take steps ‐ small, and than bigger ‐ by beginning to save!
Once you saved some money, you've become an attractor of more money. Part of the money you receive wants to be saved by you! Later on, in another lesson, I will learn you why money wants to be cared for and what ways money likes to be invested. To attract even more money to your purse!
And don't worry too much about the tax man that takes away most of your income right now. Once you have accumulated more money, you'll get better options of managing your money such that the tax man gets less. That is called legal fiscal money management.
To become wealthy, you need to follow the laws which will make you wealthy. When you adhere to the laws of wealth accumulation, you will become wealthy guaranteed. This seventh lesson on learning to invest is about moving around your wealth in smart ways to increase the speed of accumulation with little effort.
We live on one planet, but we are separated over 'financial' regions. The regions each have their own boosts and bumps - periods of growth and recession. This allows for smart arbitrage, when you move your money around wisely.
Most countries have their own currency. How well that currency is doing, market wise, is a reflection of the confidence in that country.
There are also countries that share the same currency with another country. For example, the European Union has the Euro. How well this kind of currency is doing, depends more on the confidence held in the unision of those countries. Do they get along well together?
Finally, there are also global currencies. With the invention of crypto-currencies like Bitcoin, the world now has global currencies. The confidence is these kind of currencies not only lies in the expectation of the currency (e.g. the technology), but also as a way to counter lack of confidence in other currencies.
One day, not long after the invention of the Bitcoin, I created a Bitcoin wallet on my computer. With my computer I was able to mine some Bitcoin. Mining is a process that is part of the Bitcoin design, that earns me Bitcoins for doing so.
However, there was a problem. After I had mined some Bitcoin, I forgot about the whole wallet. Some years later, the Bitcoin rate skyrocketed. The Bitcoins in my wallet suddenly were worth many thousands of euros! But I lost the wallet's password.
So one lesson is to never forget your passwords. Luckily, nowadays there are great (open source) password managers that you can use.
As I had to restart all over again with investing in and trading Bitcoin, this time I would take a different approach. No more mining Bitcoin, but simply buying, trading and selling Bitcoins.