Financial Mistake #12 - Not Developing A Savings Habit | Nitro Marketing Blog

This is the 12th Mistake in the "13 Financial Blunders Newly Successful Internet Entrepreneurs Almost ALWAYS Make" series.

12) Not Developing A Savings Habit

We've mentioned this in several past Mistakes but it really deserves its own mistake because it is so common yet so important.

Why are you not saving (enough or anything) right now?

Here are some of the most common reasons I have experienced or seen in others.

Usually it comes down to a Future Spending Mindset (see Mistake #1).

Such as…

** You will start saving when you make more money. You are just able to cover your current lifestyle expenses right now so any additional money will go towards savings.

** Or when you get that big "payday" from a future promotion, product or plan you will use that for your savings for this year.

** Or another common reason is "I don't know what to do with it so I'll wait until I have a plan."

The problem with those ideas is…

As we talked about in past Mistakes, as you increase your income your lifestyle expense increases at the same (or even greater) rate. That means that money you were "going to save" is now going towards the new car, the new watch, more travel, more this and bigger that.

Everything but what you planned on which was saving money for your long-term financial future and security!!

What's the solution?

Like anything you do successfully, savings is a learned habit. And not saving is a learned habit as well. A bad habit you have mastered over many, many years.

That means you need to change your habit from not saving to saving on a consistent, regular basis.

The first step is to start the habit now, even if its a very small one. And STICK WITH IT and allow that habit to form.

Every day place $1 or $5 into jar. This small, simple step starts you on the path to developing that savings habit.

Some people, well let's be real most people will read that and think that's stupid, not important or not for them and they will continue on with bad habits and look back in a few years and wonder why nothing changed!

Please don't be that person.

Then once a month deposit it all into your www.ingdirect.com savings account.

Also when you pay yourself or take money out of the business, set aside a certain percentage into your savings. You can start with just 1% or 5%. I would encourage getting to the 10% level. For the past year or more I have set aside at least 15%.

Then as you increase your income increase your savings percentage and be aware how your spending is increasing over time so it increases at a rate lower than your increase in income. (This ties into Mistake #13 which is coming next.)

Finally develop a plan on what to do with the money you are saving. Putting it into a high interest savings account like www.ingdirect.com is a good start. But also what is your long term investing plan? Mutual funds, real estate, businesses, etc.

If you don't have a plan and a goal then the likelihood of getting there is virtually zero.

Next up, the last "official" post in this series (but I have 3 bonus Mistakes after the 13th!

~Kevin