I truly believe personal finance is only 10% knowledge and 90% is behavior. I think our discussion yesterday proves that. The behavior of refraining from spending and instead saving that money is what makes the difference in savings rate. You can be the best investor in the world and you will end up broke if you do not budget and control your spending impulses.
I have also found in life that many lessons have to be learned in experience. You may not care about an emergency fund until you unexpectedly lose a job one day and have to deal with the results. Bottom line is you have to be self-motivated and have a cause that you care so deeply about saving for that you will forgo today’s impulses and taking today’s easy road and instead save for the future. No one can create this motivation for you. This requires some introspection and soul-searching.
Once you have that fire in your financial gut, its putting the rubber to the road. Budgeting is how saving is accomplished. You have to be spending less than your income, consistently/
Human nature is such that we easily become unmotivated if we can’t see quick results. Sometimes just seeing that bank account balance going up once a month isn’t enough.
Tomorrow - Self Motivation