Saving money is something we should all aim to do, especially to INVEST! I wanted to share a plan that I came up with to save money. It balances both enjoying life, but also saving money to invest. Let’s all be honest here, we want to enjoy life and that can be pricey. So, if there was a plan that would allow you to build wealth and enjoy life, is it one you’d want to try out?
I have implemented this plan myself and I was able to accomplish what the plan is actually for; to save money and enjoy life. Don’t be surprised at how simple this plan actually is though. Here it is:
Save money for one month. Enjoy money the next month.
Pretty simple, right? It can be pretty difficult, but let me explain in some detail what I mean by this layout.
- Save money for one month
For the month that you are saving money, I literally mean save money. You don’t go out. You’re as frugal as you can be. Eat cheap food if you have to. Save your vehicles fuel. Whatever it is that you need to do to aggressively save money, do it. I had an old post on three ways to save money, see if you can apply it. At the end of the month, whatever you managed to save up, invest it in whatever you invest in. I recommend stocks and real estate and since real estate is capital intensive, go with a great dividend paying blue chip company. Preferably ones that pay monthly dividends, like…REITS!
If you’ve never had passive income, now you do! Welcome to the club! It’s a great feeling, you just need to invest more and more to eventually be getting a big fat check!
- Enjoy money the next month
Before you enjoy your money, I need to point out that I don’t mean spend the money you saved. That should be invested at this point. I mean invest the money you are making for the month you are in. So, your first paycheck that month, go enjoy it. Take your significant other out. Find a hotel. Whatever it is that you can afford. Go do it.
That covers the money saving plan I have for you. I’d like to add, the best way to save money is to take step one of this plan and implement it year-round. I understand everyone has a different view on money so, I wanted to provide a savings plan to help you out. The main thing is to actually save money and invest. Start building your passive income to really start enjoying your life.