How to Save for Your Future

January 1st 2013

Begin Saving Today!

One of the best selling books about how to become rich is "Rich Dad - Poor Dad" written by Robert Kyiosaki. The book describes the differences about how rich and poor people manage and use their money. Shortly told the message is;

• They who become rich use their money to buy assets
• They who remain poor use their money to buy more debt

Said in another way, rich people try to gain money that starts working for them, while poor people continue to work for the money throughout their lives and buy many useless items.

The best way to get money today, if you are broke, is to begin saving. You cannot invest in anything until you have something to invest with. Once you have saved up enough, you must ensure that your money begins to make more money for you so that you eventually become rich. For example, when you buy a new car, the value depreciates every year that passes, and you buy yourself more debt. If you want to get rich you must consume less money on things that decrease in value. The more of your tax money you have to take out each month and pay for a car, the less money you get to build up on your capital, and the longer it will take to get rich.

Financial independence

Financial independence is defined as being able to afford a lifestyle that you desire, without having to work. That means your monthly income is larger than your regular expenses.

It is said that 95 percent of people at the age of 65 in the western world are not financially independent and must live by a minimum pension for the rest of their lives.

Can you save?

Unfortunately, the vast majority of people are spending more than their earnings and will consequently increase their debt each year, rather than setting aside a small amount each month for the forced savings.

Here is an example of reflection:
If you save $ 250 each month for 20 years with 5 percent interest, you will have more than $ 100,000. The problem is that people often stop saving because they use it on other short term spendings. They also are tempted to spend the already saved money on vacations, car etc.

Self-discipline

It takes discipline to put your desires aside when you look at something you really want knowing you have money to buy it. Most of the people do not have self-discipline to keep their savings for long. A saving model where money increases in value and cannot be taken out would be beneficial in long term. Buying trees is an excellent way of saving. They increase a lot in value over the time (20 years) as they grow.

Buying Better Globe Trees for Savings

Better Globe offers a monthly automatic tree purchase program. This program is an excellent way to start saving for your future. You have the choice to buy as many trees each month as you prefer. In the example below you can see how much profit you will receive in 20 years by buying 10 Better Globe trees each month for one year (10 trees equal 170 Euros). By doing this every year you will have a predictable future income.