An Introduction to Personal Micro Savings

Regardless of income or tax bracket, most people find it difficult to save money. There are several reasons for this: saving money isn't easy (although it is simple), it's not a lot of fun (there's so much to buy), and our monthly expenses always need to be paid (and only seem to grow).

On top of this, saving a substantial amount of money can seem overwhelming. If you can only afford to save $20, $50, or $100 a month, the thought of saving up $10,000 seems almost impossible. It would take years and years, and who can wait that long?

Time to think small

Part of the problem--aside from that fact that we receive almost no financial education in school--is that we've only been taught to think big. "Go big or go home" is a North American rallying cry. We think in terms of millions of dollars before we can even save one thousand. When it comes to savings and financial responsibility, we've got it all backwards.

In reality, it pays to think small. You have to master yourself first by mastering the little things before greater things come your way. If you don't control small expenses and savings, it's very unlikely you'll be able to manage the big ones.

Personal Micro Savings

Personal micro savings is a concept I developed and applied in my life with great success. After years of struggling I realized it was the little expenses, the little waste expenditures, that were slowly eating away both my ability and my will to save. That first $10,000 seemed further and further away.

For many years I was strapped for cash. I earned a decent salary, but the money was gone before I knew what happened to it. When I realized that by making seemingly insignificant changes to my life I could literally save money from being poured down the drain, and then divert those "micro savings" to smart savings and investments, I was able to change my life.

Start saving today

The interesting thing about micro savings is that it's easily habit forming--because each dollar saved is a personal victory. While saving a fixed amount every month is an excellent strategy, there is no emotion involved, and you usually have to wait until payday.

But when the phone company refunds you $20 they over charged, you feel empowered. When you realize that you can save $200 per year simply by watching less television, you're motivated. And when you realize you can start saving even more after tax dollars right now, just by doing some things a little differently, it almost impossible not to.

Develop financial discipline

The philosophy behind personal micro savings is that by eliminating wasteful spending on a micro-level, you'll develop the financial discipline to grow your savings and investments on a macro level. It's very hard to create wealth and lasting financial freedom the other way around.

When you micro save, you reclaim money that is yours, money that would have been wasted, and money that you can put to work on your behalf. It might be a small amount of money at first, but it feels absolutely huge because it's almost like creating money from nothing.

Be financially wise, not cheap

Have you ever noticed how really wealthy people--self made millionaires who worked for their wealth and didn't just inherit it--often seem to be very cheap?

They're not cheap, they're financially wise. They spend money on the things that enrich their lives, but they don't waste it on impulse buys or high risk investments. This is because they know the value and power of a single dollar saved. 

When you waste a dollar, you kill it's children and grandchildren as well. Protect your money's family tree and its future generations, and put them to work for you. Micro save today so you can develop the financial intelligence and self discipline to invest wisely tomorrow.

When it comes to your savings and expenses, think small first. Eliminate wasteful expenses and micro save those dollars. Invest in your future by investing in your financial self control.

This is what personal micro savings is all about, and you owe it to your future to get started today.