by Estrella Stark

Created on: March 25, 2007   Last Updated: May 19, 2007

My version of the Golden Egg Theory

The first thing to understand to be able to save money is why you should and what your goals are. For me it was very simple. I want to get rich, so rich that money will no longer be a problem in my daily life but an asset. So, I will not bore you with numbers but you should calculate how much money your goal is. For example, you want to have financial security meaning that if you lost your job today you would be able to live the time it would take you to get a new job. You would then have to calculate how much you would need per month and how long time frame you would need. Or you could strive for financial freedom meaning that you would want to have so much money that you could stop working and live of the interest of your capital. Or maybe you just want to be dept free. What ever your goal is you need to put in words and number. Why do you want to reach this goal? As I stated earlier, for me it is, that I do not want money to be a problem but an asset for my life.

It is statistically proven that richer people are happier, but that does not mean that money makes them happy. I am a strong believer it is the comfort of having money that makes them happy. It's not the things they buy but their financial freedom.

To get rich you need to save money. You can either work for money all your life or let money work for you. So how do you start saving and what do you do with your saving? The next thing you have to do, to get from dreamer to doer, is save. You have to realize that it might take you a few years to get a capital that you will make you money. Did you ever think "I am going to buy this because I deserve it"? Then you need to change your way of thinking. When you buy things you give your self a quick fix, when you are saving you are putting yourself and your dreams first.

Let's say you start to save today and in one year you will have a decent start to your money machine. But what if you take something from it to buy something, maybe you want to give your self a treat for being so good this year. Don't! You have to put money that you are aloud to use in a separate account from the money machine account. You have to think of the capital you are saving as a golden egg. The egg will give you your dreams and your financial goals, it will give you freedom. I am certainly not saying that you should not use any money that you are saving. I am not telling you to follow Scrooges and become cheap and boring. We all are saving to richer and happier. But be careful with our golden egg; that is what will give you your dreams, not the money you spend.

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