Tips for how to save money for your future?

The second financial challenge that most people demands for solution is how to make more money. Most of the people have a dream of how to save much money. Dreams for you to travel the world or you send your children abroad for quality education, these only be possible if you have saved some amount of money.

I think these are the most important steps that guarantee you to accumulate your wealth seriously.

Early motivation of your elephant:

The cause for short term pleasure is the long term goals of some of your friends. By looking some high quality fashion at a deep discount, it is difficult for you to untouch your two hundred saving. And that's why you forgot now that these two hundred allocated for your trip savings and for your children's' education abroad.

The irrational part of your brain is controlled by elephant. If you follow this time your rational part of brain then you can save RM200 for a nice trip or for a quality education of your children but the elephant is so huge and very hard to be controlled by your rational part of mind. That's the reason to motivate your elephant. Try to go it to the directions you want, not following where it wants. You can early motivate it because collecting money takes time. The best chance to achieve your goals is the longer time you have.

First pay yourself:

First priority for saving is you. An important decision to make is at the time of money comes to you. You can save it or give it to other people. Paying to other people first is a big mistake by many people. They always put themselves at the bottom of the payees list. That's the reason of getting only peanuts at the end. How you can save before spend? The next part of having an effective saving system is so critical.

Have an effective saving system:

Riding Elephant at the time of danger is really so hard, you don't want to let those risky moment. The most emotional part of your brain is holding you back from your long term saving goals, that's why you should have a system that prevent your emotions to take part in financial decisions.

That's why an effective saving system (EPF) always works for most people. Every month when you see your salary statements, you may feel a pinch. As much amount from your salary has cut away for your future retirement savings. And you have been forced for participating in this program, so, you can't do anything now. Why not put this saving system to do more good for you? Taking up educational saving plan for their every new born child from insurance company is the sign of rational parents.