Over 44% of American families are not saving any of their income. They are either passively or actively allowing their financial future be played as a game of chance. Not only are they not reaching for their savings potential and their financial future, they are falling away from ever being financial secure.
But there are some American families who already are or are moving closer to financial success. And they are accomplishing financial success by building a firm financial foundation through maximizing their savings.
What is your savings potential? Is it 10%, 20%, 40%, or 50%? Yes, it is possible for a person to save 50% of his or her earnings–and more! It may sound incredible, but it is realistically possible to save 30, 40, 50% or more of your income every month!
Reaching a savings rate of 50% of your net income (gross income minus taxes and social security) may seem dramatic, or unreachable, or even unrealistic, but if you are willing to work vigorously and wholeheartedly to reach success, 50% is a very attainable number. Most people could attain 50% savings, but for a select few the savings level can reach even higher. Impossible? Not at all. There are some, who, if they truly desire to save their way to success, could be saving 60, 70 or 80% of their income month after month. You may not be in a position to reach that, but you are in a position to reach for your maximum savings potential. For most of us, a 25 to 50% savings level is an achievable goal.
Every person has a different maximum savings potential. Maybe you are the spouse who supports the family, and a 50% savings rate may not be reached–but you can still reach your maximum potential, e.g. 25% savings rate. Maximum potential means reaching the greatest savings rate possible under your specific conditions. Some people, under specific conditions can save as much as 80%. You may or may not be one of those people, but you can still reach your savings potential. Become more than just an average person–save more than just 3 or 4% of your income. Develop goals of what you want to save and achieve, start working towards your goal and you will reach it.
How much can you save? It really only matters how much you are willing to work, use your time, and sacrifice. The amount is unlimited. Do you desire 25%? Work towards your goal ardently and you will easily achieve your goal. If you want to save more, because you desire success to come sooner, set a goal of 50% or more. Start working toward your goal immediately, follow the proven methods in this book, desire to reach your goal sincerely and work with as much discipline as necessary to reach your goal.
The main obstacle obstructing most of us from reaching or savings potential is our “spender” lifestyle and personality. You must transform yourself and your family from “spenders” into “savers.” This involves so much more than the simplicity of spend less and try to save more. You must change your lifestyle. You must change your habits and behavior. You need to change your way of life. You must contrive how you can incorporate “saving” into every facet of your life and your family’s lives.