Wealth planning, by simple definition, is a simple and practical way in which to one manages his or her financial affairs or available assets in other to get richer.

Not very many people know this, but wealth planning is responsible for the creation of some of the richest people on earth. They literally mentored themselves on how to save money to become rich.

There is a very old English saying that goes, “penny wise, pound foolish”. In truth, this saying is a direct reference to adequate wealth planning (how to save money). It means that even those who have a lot of money but fail to plan their finances well will lose whatever they have.

While there are many professional wealth planning advisers willing to attend to you for a fee, some of the best advice you can ever get on the subject are from real people who have actually managed the little assets they have to become rich. When some of these people share their real-life experience in wealth planning seminars, so many people find it a lot easier to understand and relate to.

 

Read Also >>>>> How to make money online: 23 ways and websites

 

Once, I came across the sad story of a who broke down in tears after hearing the speech of a low-level banker who promotes wealth planning.  Her story was a simple but very common one, she has worked for 19 years with nothing to show for it. The speech which was given by the banker actually made her see the light and it hit home to her heart.

In this post, drawn from the knowledge of two very wealthy men who got rich by adequate wealth planning, we will show you very simple ways to save up money and create adequate protection around that money you are saving.

In today’s society where wistfulness is the order of the day, saving money for the future has a negative cliché about it. People give excuses like “I rather invest than save” or “Things are so expensive, I got nothing to save”.

A Billionaire’s Tips On How To Save Money and Become Rich | Wealth Planning

What people fail to understand here is that the best investors are actually the best savers and the worst investors are the highest spenders. If you do not understand what I’m saying, why do you think countries have foreign reserves?

 

The Best Wealth Planning Strategy (How to save money propertly)

The best wealth planning strategies are those executed while a person is in his or her prime. Why? The issue of wealth planning to grow rich is something that can only be accomplished over a long period of time. Some of the richest people in the world claim that they learned this the hard way.

 

The Best Ways and Tips On How To Save Money and Become Rich | Wealth Planning

Outlined below are the best ways to save money to become rich. It is to be pointed out here that a person must have the will to make this work from the beginning.

 

1. Realize The Need To Grow Rich By Saving Money

If you are one of those who believes that no one can ever grow rich in this present age and time by just saving money, then you haven’t heard about Billionaire Warren Buffet.

Who is Warren Buffett?

The photos of the old guy you see in this article with wisdom packed quotations, that’s him.

Warren Buffett, CEO of Berkshire Hathaway is one of the richest men in the world and most of that money comes from saving. This is one man who is considered a “Savings Billionaire” and it reflects in every aspect of his life. He saves so much that his daughter Susie thinks its embarrassing. He drives a car that is extremely cheap and about a decade out of date. spends less than $3.17 on breakfast, and he lives in an old house he bought for just $31,500 in 1958.

 Cadillac XTS cost only $45,000 when he bought it in 2014, an upgrade from his former car a 2006 Cadillac DTS.

 

Some of the best financial advice you will ever find online are actually from Warren Buffett and the one advice of his applicable here is ‘never plunge into the murky waters of investments without having some kind of a backup savings plan. While there are a thousand ways to save money, the number of ways to save money and become rich are very few.

 

2. Savings Are Not For The Poor Alone

The case of Warren Buffett is a billionaire who still saves greatly should be an eye-opener here. However, if you still believe that the art of saving money to become rich is only for the poor, sit down and calculate how much time you’ve been a working class person, then go and check how much your current account balance is. Do the maths and let the resulting tally speak for itself?

 

3. Who Exactly Are Poor People?

“Pay Yourself First”, that the number one rule of business and funnily enough, most people forget it in all their financial affairs in life.

Too many people spend their money before considering saving. This is actually a very dangerous path to walk. The situation should be the exact opposite, save before you spend.

how to save money

4. Stay Away From the Banks

Banks are the traditional Institute for saving money the world over and yet I am telling you to avoid it. Think I’m crazy, right? Not at all. According to some very successful saving experts, this is one of the simplest ways to save money and become rich. Dig further into the issue for facts and you will begin to see the reason why.

The banks only offer you the ability to do the following.

 

  • Conduct Transactions
  • And the Speculative function of money, keeping out the most important aspect of savings, which is precautionary.

Without even realizing it all the transactions you conduct on your savings account makes the bank profits and you nothing. Basically, they offer only the Speculative function of money, keeping out the most important aspect of savings, which is purely precautionary (enough cash in your hands when you really need it on a rainy day).

Unknown to many, banks only offer you a token sum of 3.1% interest on whatever amount it is you save into the savings account you open with them. The catch is that you must never touch it, but of course, they never make this very clear and this is the speculative function of money talked about above — you assume that you are getting some interest on your savings while you are not. Indeed, without knowing it, we open a savings account and start making monthly deductions that all but cancels out every possible interest. We deposit a certain amount in the morning and before evening the next day, withdraw it all again. Now ask yourself the smart question here, what is the essence of saving?

The greatest mistake business people and working-class people have always made is believing the that banks love them, This post should help you get rid of that loser mentality. Ever wonder how the banks make all those tons of profit each year that makes all the rich businessmen want to own a bank? By putting your money in savings accounts, even if for a day, you actually help the bank but gain nothing in return. Between you and 1,000 other customers with savings accounts, you people actually provide the bank with a solid, interest-free, capital base over time. They make profits, you don’t.

A Billionaire’s Tips On How To Save Money and Become Rich | Wealth Planning

 

5. Consider Forced Longer-Term Investment Plans

Ben, the low-level banker who teaches people how to save money to grow rich, in one of his seminars, spoke of how he began his journey about a decade ago. He tried to help a friend too then. They had a six-year plan in this case and the friend complained about the awful length of time required to save up his money and on the basis of this, declined the offer. According to Ben, this friend has worked for the seven years since with an account balance of less than $200,000, while he on his part, has quit his low-level bank job entirely, thanks to a net worth in the millions due to shrewd investment on the saved up money.

Simple research shows that Warren Buffett walked this particular path on the way to his immense wealth but he wasn’t the source of Ben’s inspiration of the wealth planning strategy of saving to grow rich.

According to Ben who used to work in a financial institution, he has seen young people become millionaires merely by careful saving monthly for just a few years, while others who say they wanted to invest their money ended up doing nothing.

A Billionaire’s Tips On How To Save Money and Become Rich | Wealth Planning

A Billionaire’s Tips On How To Save Money and Become Rich | Wealth Planning

The key here for young working-class people is to consider investment plans of 6years to 9 years. This strategy also works for newly wedded people, and young mothers planning ahead for their children education sho.

 

But where do we get such plans? Certainly not in the savings account of a bank. An insurance company is what you are looking for. Most of this kind of investments plans actually have a form of protection embedded in the event the breadwinner of the family dies. And here is why we recommend an Insurance Company for your savings. For more details, look out for my next post.

 

6. Have Just One Single Bank account and Multiple Investment accounts

One of the simplest ways to force yourself to accumulate wealth for your family is to have just one bank account but multiple investment account or plans. Bank accounts, the limitless possibility of withdrawals, expose you to the temptation of spending more money, while investment plans, on the other hand, encourage you to save up for a goal or project.

A large number of the wealthy people you see who buy up major assets such as real estate and entire companies almost on a yearly basis do not achieve all that with their bank. They go for investment plans with insurance firms because he knows exactly what is on offer. I bet this is the first you are hearing of saving money with an insurance company.

 

READ ALSO >>> 6 AMAZING WEBSITE TO EARN EXTRA MONEY

 

7. Draw Up Your Goals Clearly

Attaching a clear goal to your financial future will certainly go a long way to helping you make plans towards it. As a point say this, “if I save $10,000 monthly for  8 years, I will become a millionaire and invest in a good business”.

Of course, all pockets are not the same size. What one person achieves in 8 years, another can achieve in just 2 years. The smaller your financial power, the longer it takes to save. Just plan right and then invest wisely. You could even become richer than the those who had bigger financial power than you did. And this is where an adequate backup plan comes in handy.

Investment is a risky business that can make you a lot of money in just one turn and then cost you all in another turn. Just go ask Warren Buffett who makes all kinds of investments that are supposed to be secure.

A Billionaire’s Tips On How To Save Money and Become Rich | Wealth Planning

 

8. What is your Monthly Budget?

Getting through each month with a budget might be just what you need to ultimately make your dreams come true. Years ago, I used to earn just $5,000 monthly and I realized that to get out of financial difficulties for good, I had to force myself save at least $2,500 monthly. It was by no means easy, but I achieved through determination for 7 years. Even after I got a nice pay raise, I kept on with that particular savings as a residual income. This money isn’t much when imagined but just do the maths. By the end of 7 years of saving no less than $30,000 and sometimes more each year, I had a substantial amount of money in my savings to go into big business.

Like Warren Buffett, I presently possess several assets and amazing account balances, but my budget and overall spending will always remain frugal.

Next Post: Lists of insurance companies you can save money with in the US, Canada, Switzerland, and the UK.  Please note, an account can be opened online and all transitions can be done likewise with most of these companies so it doesn’t really matter what nation you live in.

A Billionaire’s Tips On How To Save Money and Become Rich | Wealth Planning

A Billionaire’s Tips On How To Save Money and Become Rich | Wealth Planning

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