Savers' Savvy Sayings (Part 1)

The following article is part 1 of a series of two articles on catchy phrases to help the reader as to what to keep in mind when conducting financial affairs:

The following article is part of a series of two. They are a collection of memorable sayings to help all people concerned with personal finance. Part 1 includes sayings associated with the building of savings in the Multimillionaire Road Get Rich Plan. These include ideas such as working hard, budgeting and careful spending to increase your wealth. Part 2 is to do with how to invest and keep those savings to build your existing wealth.

Part 1: Sayings for Building your Savings

Working:

All hard work leads to profit; but mere talk leads only to poverty

There's no use wondering and complaining that you don't have enough money for your spending needs. The  advice here is to be active and do something about your current income situation.There is not substitute for hard graft and hard work will pay off eventually.

Laziness:

A sleeping lobster is carried away by the water current

Likewise, being indifferent to your situation will not help you gain financial freedom. You need to be motivated, keeping a clear goal in mind. Then there is a target to work towards and the hard work can begin.

Earning:

Never depend on a single source of income

To become financially independent you need multiple income sources. Ideally these should be passive income streams that do not require much time or management to continue to provide an income for yourself. The idea is that you pay yourself first. The old saying is true: "the rich do become richer" because they understand that in life you need to pay yourself first so that in future you can earn more money.

Budgeting:

It's pointless to carry an umbrella if you're shoes are leaking

Keeping a tight grasp of your income and outgoings is so crucial to personal finance. There are people in the world on £500,000 salaries who spend £500,000 and so do not save and have little or no wealth. Then there are those who are on £50,000 but only spend £25,000, building a sizeable share of savings over their lifetime. Keeping a strong financial foundation is key to building wealth and this is achieved by careful budgeting, managing your money in such a way that each month you keep more than you spend.

Spending:

If you buy things you don't need, you'll soon sell the things you need

Buy needs, not wants. Your priority in spending should always be: needs, debt, savings, wants; in that order. If your spending patterns are in any other sort of order then you are not prioritizing correctly and may never make it to financial freedom.

Expenditure:

Beware of little expenses; a small leak can sink a large ship

In a similar fashion as before, keeping a watchful eye over spending habits it key to getting out of debt and building wealth. Even the little expenses can cripple you over time. Buying a coffee on your way to work every morning may cost you £3 a day. With 5 days a week, working on average 45 of them adds up to £675 spent on coffee per year, and £6750 over 10 years. With the one small change of bringing your own coffee to work instead of buying it you could save yourself thousands over your lifetime. With many small changes you could save yourself hundreds of thousands.

Please look out for the second Part of this mini series which will focus on savings and investments.

Let me know what you thought of my analysis of each phrase in the comments box below.

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.