While much could be said about currency on a macro global level and how currency has come to own the world by the placing of a price on everything and everyone down to their very work and time, I will simply write a little about how money works in your immediate life. First money seems to work in a way that you never receive enough money for your efforts as you always seem to need for your wants. I wonder if this rising treadmill effect is by design or is just the result of a character flaw of people's eyes always being bigger than their wallets.
There is no easy way. If you want to save money you must spend less than you make. You can't be spending money you hope to make in the future by "borrowing" it now. To be a successful investor before you can even start you must save the money you will need to start investing. The science of budgeting is simply just the arranging of your overall finances into a positive cash flow. Which is a fancy way of saying you must spend less money than you earn. Only then can you begin putting yourself in a position of letting your money work for you instead of always just working for your money.
Easier said than done. The system is rigged against savers from the start. It will take a extraordinary effort and near term sacrifice on your part to reach a positive cash flow. The only way to begin these efforts is to fully understand the benefits of placing yourself in a position to have your money work for you. The only clue I can give you is that interest earned on savings or capital appreciation on savvy investments is free money. Free money to those who have learned the secrets of saving money and investing it and letting it work for you. Extra hint, The people lending you money or extending you credit already thoroughly understand the concept of free money. Your paying of interest or credit costs is free money to them.
So when to start? Where to start? Well, here and now. You must start by spending less money than you make right now. Not wait for some, that never comes, time when you mistakenly believe that saving will be easier. Simple rule, pay yourself first before you spend money on anything else. And that can be whatever you think you can afford. Then double it by doing some soul searching and decide what things you're still spending money on that you can do without. This is the hard part. Giving up convenience, comfort and fun to begin keeping that money you usually just squander.
Your finances paint a picture of your character. So that is the real meaning of money. The picture it paints of you! Are you a waster? Are you self indulgent? Are you just weak in general? I'll assume you're not lazy if you're already working. But does your money always end up at the liquor store or drug dealer? Perhaps your money ends up at Starbucks while you "buzz" on six dollar a cup fancy coffee? Will you find the discipline to keep your money from being a tramp out on the street? Flying out of your pocket at every whim? Looking for new home always in somebody Else's cash box instead of your own? It's up to you. One more thing, stop eating so much over priced garbage at all those restaurants and junk food places.
What's Ironic is that the person who learns these disciplines and cleans up their life will be the ones who will be happiest and healthiest when they achieve their goals of Financial independence. And as such will be able to enjoy their financial harvests. Lucky windfalls soon leave the hands of those who haven't learned the basics of genuine, simple living.
So what's it going to be? No one can do it for you. In the end it's as good for you as it is good to you. Good Luck!
