Monday, August 10, 2009

A Scientific Way of Saving Money

A Scientific Way of Saving Money

Understanding the fundamentals of how money behaves can help us control and accumulate it. One way to do this is to view money as nothing but a form of energy. Using principles of energy, there is a scientific way of ensuring personal savings.

Rule 1: Energy attracts more of itself. If you are currently in debt, there is a possibility of attracting more debt. Similarly, if you have money, you will attract more of it. In order to attract more money, you must first accumulate it. This will start a chain reaction and allow you to accumulate more wealth.

Lesson 1: Open a savings account. This is an important step to building wealth because it gives the money somewhere to go.

Rule 2: Energy follows the path of least resistance. This means that money naturally flows to the areas that are of immediate need. Essentially, it is you who decides where the money goes and how much needs to be allocated. The more needs you identify, the more money is expended. Wealth is accumulated only when inflow exceeds outflow. Thus, in order to accumulate wealth, fewer needs should be identified.

Lesson 2: Prioritize your needs. People have varying needs, but those who tend to accumulate more wealth are those with very few needs. Those who live beyond their means tend to end up broke or bankrupt.

Rule 3: Energy requires exchange. In order to receive something, something must be given in exchange. You simply cannot gain from nothing. This may explain why people who are banking on the quick way to earn the buck, such as lottery tickets or slot machines, invariably end up broke. Those who do win in the lottery also tend to lose them all back. Accumulating wealth by chance is not sustainable.

Lesson 3: Invest and manage your money well. Wealth is acquired by employment, savvy investments and good management. The more you give, the more you will receive.