Personal finance is tough, especially when you’re just starting out. It feels like you need to save or invest a lot of money before you see any sort of return. And because of this, many beginners quit. If you’re struggling to master your money, this article will help. Today you’ll discover all the savings motivation you need.

Here it goes:

1. Savings Is Incredibly Beneficial If You Have  A Low Income

The people who give up on saving money are the people who need personal finance the most.

You may have a job that feels like it doesn’t pay enough. And every month seems like you’re just getting by. If that’s the case, then you absolutely need to invest.

Saving money and creating any amount of passive income will instantly reduce your financial anxiety and give you a little breathing room.

Suppose you’re making $10 an hour (we’ve all been there). If yo can save up just $1,000 a year and put it into some steady, boring blue chip stocks (or a high dividend ETF),  you’ll earn about $40 in dividends. That’s cold hard cash you can either spend or reinvest. And $40 may not sound like a lot, but remember that’s like getting paid for an extra four hours of work each year.

Now imagine reinvesting and really living thrifty for a few years. Doing so allows you to save up and invest $10,000. And guess what? Now you’re earning $400 a year in annual dividend income. It’s like getting paid for a whole extra week of work!

No matter how much you earn off stocks (be it $40 or $4,000), dividends are a fantastic form of passive income and one which can really help liberate you from having to only rely on your paycheck.

While this is great for everyone it’s especially beneficial if you’re a student, low income employee, or new to the job market.

A little savings and investment goes a long way.

2. Invest $10 A Day (The Easiest Savings Motivation)

Charlie Munger is one of the world’s most famous and successful businessmen. Do you know what his biggest (and most profitable) invest was?

Himself.

Every day Munger would bill himself one hour’s wages. And he’d use that money towards investments, business projects, and knowledge. At the start, this didn’t seem like much. But today Munger is worth billions.

View yourself as your most profitable asset. Take a couple bucks each day and invest them into yourself. This could be building a side income, buying books, or picking stocks. Whatever the case, choose something and work on growing or improving it every single day. When you look back a year from now, you’ll be surprised at how far you’ve come.

Closing Thoughts

If personal finance was easy, everyone would retire wealthy. But it isn’t. Like everything in life, the majority of people don’t see instant results, so they quit. Don’t make this mistake.

Any amount of savings or investments is better than nothing.

Additionally, if you stick with it, the results do snowball. Your first year or two might seem discouraging, but wait until year 10 or 20. That’s when all your little efforts really add up and you see just how far you’ve improved.

Anyway, I hope this savings motivation helps. And as always, good luck!

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