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The Only Thing You Need to Know:

To Save Money

 

Personal finance can seem cosmic.  As far as we know, it may actually be cosmic. 

Cosmic1

Q: How do people accumulate millions, billions, gazillions of dollars in outer space? 

A: They don’t; the “cosmic” reference was really just a metaphor.

So, how do people accumulate all those dollars on Earth?  In many different ways: they inherit, they win, they gamble, they take out life insurance policies and hire hit men (JOKE).  But for the most part, “rich” people become rich by saving and investing.

Saving is step one.  That’s why I put it first.  I’m making a point here.

 

It’s Not Rocket Science:

The equation is simple.  Even math-haters read it and say, “well, duh.”  So, why is this equation so important?  Because it’s the only thing you need to know in order to save money: spend less than you earn.

I’ll throw another metaphor at ya: saving is the spaceship that brings you to the financial cosmos.

Terrible metaphor, I’m aware.

Forget the spaceship. 

 

Equation 

 

Equation2 
 

You mathematicians will note that the ideal equation is limitless.  “More” and “fewer” are infinite; I suppose it really doesn’t take a mathematician to figure that out. 

There is always room to improve your budget and, believe it or not, you can always make more money.   

 

It’s more like getting kicked in the shins.

I’m not the first to put these ideas together, or this poop in a group if you will. 

The saving equation is simple, but the real trick is it’s execution.  Saving requires self-discipline, which, if you’ve ever been on a diet, you can attest is a both rare and exhaustible commodity. 

 

Photo Credit: NASA


Article publié pour la première fois le 05/10/2010

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