Save, Give, Spend

A few years ago, I learned about a great money-managing strategy. Have you ever heard of having three piggy banks? Every time you earn money, you split it three ways. You save some, give some and spend some. So, let’s say you make $10 babysitting. You might put $1 in your giving bank, $5 in your spending bank and $4 in your saving bank. If you get into the habit of always putting your money into three categories, you will create a lifetime of wealth for yourself. If you have a job, let’s say you earn $3,000 in one year. Based on this strategy, you would end up with $300 to give, $1,500 to spend and $1,200 saved. Add that up over several years and watch your wealth grow! When it comes to the giving portion of your money, pick an organization or cause that speaks to you. Maybe your parents would be willing to match your donation!  

Visit www.richdad.com for more great ideas about this topic.

Do you have another way of saving your money?  We’d love to hear about it!