Ways to save money and grow richer

Most people assume that people get rich from a big income- either through owning a sucessful business or from being having a big salary. That is partially true but it is by no means the entire story,...

When I was younger I used to work in a bank. I worked within the credit department. It was a dull job lacking any real responsibility but it gave me something alot more valuable than the 6 pounds an hour I was on- it gave me a lesson on personal finance ( one that I'm now going to pass onto you-for free of course!).

Part of my job looked at peoples' incomes, their debt and their outgoings. There were some people that were in serious debt, some that ignored it and some that were referred, mainly to the Citizens Advice Bureau ( a useful place to go as they offer free advice on getting out of debt). I took a particular interest in this part of my job, I could get a glimse into how the nation handled their money.

Patterns that I had expected to emerge did not, I was shocked at how 'rich' people ( people with large incomes) did not have a healthy personal balance sheet.
For example, there were some individuals earning 100K plus with debts of 100K plus, excluding their enormous mortgage payments. Even though they were on a large wage it was getting eaten away- they were taxed 40k and were barely making it through the month- the interest paymentd on their outstanding loans was mounting higher and higher. When I looked down to the bottom of their cash flow sheet I saw that out of their income and mine I had more money at the end of the month- and I was on £6 an hour!!! This surprised me. It may surprise you. After reading more you won't be surprised..

Financial awareness comes by irradicating some of the myths that circulate- some common others not. It is through this knowledge you can gain wealth and be financially secure.
In improving your financial intelligence/awareness I urge the reader to be constantly aware, ask yourself questions when an interaction with someone else involves money: If someone comes up to you out-of-the-blue, for no reason, in an odd setting, dropping the name of a product ( like door to door, mail shots, via email) they may be on the lookout for an easy sale- don't be a target. If you are buying a product- check the market, if in doubt question. Question if the 'financial advisers' are on commission, question whether the salesman at the carpark is on commission, question (maybe best to question yourself)if you can get the product cheaper online- either on an online shop or via an auction site like ebay. Don't be made into a fool- don't make them rich and you poorer. This argument is all the more relevant today when anyone can be offered a loan- I saw this with my own eyes- people that were over their heads in borrowings were being offered loans- and I was the guy that was supposed to sell them ( I was only at the bank 4 days!). Once again, there are many people/firms that will want to take your money. Another myth- all banks are good. Nope. They are a business and all they care about is making money for themselves and their shareholders- if that means screwing you over and (for example) giving you a high rate loan, secured on your house, that you can't really afford, they'll do it.*.

If you don't question your finances could end up like the 'rich' peoples did- they believed in the myth that if you have a 'good' (high paying salaried job)job and a big house you are rich-this is only true if you have the financial awareness to take care of your finances! You can start this by questioning. Do your homework- read this blog and other books on finance to help yourself in the future- Invest in yourself!

*Carry on reading this entry and all my entries to find out how to take control back to you.