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Strategies For Raising Funds: Saving

How often the lack of money stops you from doing things you love or dream? My bet is, for most people this will happen for at least 50% of the times when they don’t follow their dreams. There are many ways to solve this problem and raise money for your dreams or just for investing.

Saving
Photo by Austin Kleon at Flickr

Saving may sound boring but most secure things do sound that. Saving is a straight, fool proof and efficient method to raise money for investing.

Usually the investors do not feel very attracted to saving, because of the following reasons:

  • You can’t raise enough money by saving
  • Saving can significantly change your lifestyle
  • Saving makes you “little” and does not help you think big
  • No one has made riches by saving
  • Saving money equals losing money because of the inflation

I think most of these reasons are myths:

Myth 1: You can’t raise enough money by saving

People who say this have missed the math classes in the school. Save only $100 monthly, put them in safe mutual funds (if you can find any though) yielding just 10% yearly and you’ll have $42,000, in 15 years. $42,000 may not sound much, but with more aggressive investing they can turn into half million in another 10 years considering that you keep saving.

25 years may look like a lot to own a half million dollars, but this is achievable with just saving $100 per month and proper investing. If you can save more and/or achieve better ROI, your first million is going to come soone.

Myth 2: You should significantly change your lifestyle

$100 monthly to change your lifestyle? Depending on where you live, $100 could be still something, but not too much. Typically you can save $100 or much more per month without trouble if you try some of the following ideas:

  • save electricy, gas and water
  • use public transport
  • use local and season foods – better for your pocket and for the ecology
  • cut out expenses for alchochol, cigarettes, sweets and other not so useful habits
  • don’t be in rush to buy the newest TV, car, washing machine or suite. Following these you can save a lot more than $100
  • buy bigger quantities of food once in the week and cook at home

None of these is a significant sacrifice of your everyday life. If you don’t have $100 free right now, try some of the ideas and you’ll be able to save at least as much pretty soon.

Myth 3: Saving makes you a little guy and does not help you think big

Saving from everyday expenses if very different than beeing squeezed. You should not save from anything that could bring you better yield, that can improve your life, work or business.

Saving from daily expenses is not making you small-minded. On the contrary, working against your consumator’s habbits will free up your mind and make you happier. Discussing this is out of the topic of this site, but you can only win if you decide to follow less today’s consuming society.

Myth 4: No one has made riches by saving

One of the most popular investing books in the world – The Millionaire Next Door
– proves this to be false. It says that the average millonaire in USA has achieved their wealth by saving more than 20% of their yearly income. Straight and simple. You should read that book if you don’t believe.

Saving money equals losing money because of the inflation

It’s true if you put your money under the mattress. Sometimes it’s true also if you put them in bank, although banks usually can protect you against the inflation, at least partly.

The key is not to save and wait for your money to reach some amount to start investing. Save and invest at the same time. Mutual funds, stocks, bonds, forex, real business and other strategies allow you to add small amounts with the time. Don’t let your money sit down ever for a month.

Saving is a long but fool proof process and can make you rich alone. However we are here to explore methods which will help you improve several times what saving can do. The other ideas should be applied along with saving, not instead of it.

6 Responses to “Strategies For Raising Funds: Saving”

  1. Festival of Frugality: Singles Awareness Edition — Broke Grad Student Says:

    [...] Shark Investor presents Strategies For Raising Funds: Saving at The Shark [...]

  2. Your Money Relationship - Money Hacks Carnival #51 - The Office Edition Says:

    [...] The Shark Investor gives us Strategies for Raising Savings. [...]

  3. “How to administer your money” carnival - 02/14/2009 Says:

    [...] Shark Investor presents Strategies For Raising Funds: Saving posted at The Shark [...]

  4. millionaire blog .co.uk Says:

    Millionaire Mind and Making Money Blog Carnival No. 8…

    Welcome to this weeks edition of millionaire mind and making money online. Id like to present some interesting articles from my fellow finance and investment blogger friends.
    Lets start with some resume advice. In todays climate a CV could be the key t…

  5. Festival of Frugality #166 - The Winter Is Almost Over Edition | Student Scrooge Says:

    [...] Shark Investor attacks five myths people use to justify not saving, providing some nice counterexamples. There is no reason not to save, [...]

  6. People’s Almanac » Blog Archive » Strategies For Raising Funds: Saving Says:

    [...] Source:Strategies For Raising Funds: Saving March 6th, 2009 in Finance | tags: Finance [...]









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