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Saving Money = Humility + (Time x Application)

Updated on January 1, 2013

Saving money is not simply doing one thing. I see saving money as successfully solving an equation, an equation that has different components working together to get to the right answer.

Saving Money = Humility + (Time x Application)

The above equation is not the only one out there, in fact I made this up. But by taking into consideration each part of the equation, you will begin to learn how to solve it by putting together the necessary amounts of each part.

Saving Money- This is the goal, or the result. Many of us start with this as the end goal. But this result needs to be quantified and measurable. Come up with a specific dollar amount that you want to save, whether it’s per month, per year, or an amount from each paycheck. Bottom line is to determine an amount of money you want to save. The second part of your result is that it needs to be measureable. You need to keep track of where you started, and measure progress along the way. This means measuring time and the amount saved.


Humility- At first glance this may seem out of place, so let me explain. Personal finance can be a very touchy subject to many people. This is such a touchy subject that many people choose to ignore it instead of confronting it or learning about it. Before you can begin to save money, you need to understand and accept what you do not know. You also need to be willing to learn. That means taking advice from others, and most likely hearing comments and constructive criticism that can be hard to take. That is where humility comes in. Many of us hold our finances so close that we do not even want to learn about personal finance, for the fear that we may find out we are doing something wrong, or we could be doing it better. Once you become humble, and willing to accept advice and be critiqued, you can begin to successfully save money.


Time- To save money, it will take time. You have to think long term. Results are good, and we need to see them to have continued motivation to keep going, but we cannot get discouraged if after a few months we are still not saving as much as we would like. The first aspect of time, is accepting that saving is a lifestyle, and takes permanent change, which takes a long time. The second aspect of time is that you will need to put in the time. Just saying “I want to save money” does not mean you are all of a sudden cutting costs and saving money. You need to use your new found humility and take the time to learn about personal finance. My recommendation, cruise the web and read one personal finance article a day, that may only take you five minutes, but that is a start, and consistency will help you reach your goals. The desire to save is not enough, and even humility is not enough, we have to invest our time as well.


Application- All the parts of the equation are important, but this part puts everything into action. You can have the desire to save, have an amount and timeline on how much to save, you can be humble, and devouring personal finance material, but unless you put it into action, it’s all for not. Begin applying what you learn. My suggestion, do not over due it. Apply one concept at a time, once you are comfortable with it and it has become second nature and part of your normal routine, apply something else. Create a list of ideas you want to implement, and check them off as you go, one at a time. This will also help you determine the effectiveness of each concept, which can be measured.


Now that you understand the aspects of each component of the equation, let me lastly explain why I arranged it that way. The amount of time you put into learning about personal finance, will be amplified, or multiplied by your ability to apply what you have learned. Your humility is first and added to this because without it your time and application will not be as effective. The end result is measurable results of saving money!


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