Financial Freedom: You Need a Saving Philosophy

Are you a spender or a saver?  

Depending on your money philosophy, you will either stay broke or build wealth. 

Your answer to this question can be the difference between building towards financial freedom or financial failure.

Jim Rohn once shared his opinion on the difference between “rich” and “poor” people. 

He said, “Poor people spend their money and save what’s left. Rich people save their money and spend what’s left.”

According to Jim Rohn, to build wealth, you need to save before you spend.

Think of it logically: if you save first each month before spending money, you will always build wealth. 

On the other end of the spectrum, if you always spend first, even with the best intentions to save, you never will, as there will always be something else to spend your money on. 

“He who gathers money little by little makes it grow.” (Proverbs 13:11)

Let me tell you a story to illustrate this…

Twenty years ago, two friends both studied and graduated from university as lawyers. They were employed by the same company. Both earned the same salary and received the same increases over the years. One had the philosophy of spending money and saving what’s left; the other had the philosophy of saving first and spending what’s left.  One ended up wealthy. The other ended up poor. It all boiled down to their perspective on money and the order in which they chose to spend or save their money.

You see, the choice to save and invest, like any form of discipline, has a subtle effect. Over a period of a month or a few years, the results are hardly noticeable. But after ten years, the difference is like chalk and cheese, and after twenty years, the differences are astronomical. 

It all depends on what you do with the money you earn. If you become an investor and save before you spend, you will build wealth over time. 

“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffet

So, take the advice from one of the best wealth builders of our generation: Save before you spend!

The order in which you save and spend can be the difference between building towards financial freedom or financial failure.

So, make a wise choice and save before you spend.

“The wise have wealth and luxury, but fools spend whatever they get.” (Proverbs 21:20)