I’m no money expert but I do have what would be considered a fair amount of money saved.
I tend to think about money a lot. But not in a destructive way.
I like money and I like my relationship to money.
I don’t think money buys me happiness. I don’t think it solves life’s problems. But I enjoy that it gives me options.
And I think it’s always important to have options.
But when it comes to accumulating and saving money, a few people asked me what I do specifically.
While I’m not going to get into my exact investments, here’s a piece of advice I’ve lived by for a very long time when it comes to saving money.
“Save enough money so you’re living month to month.”
Essentially you need to live “as if.” Live “as if” you’re living month to month.
So let’s say your monthly expenses are $5,000 a month.
Anything over that number should be money you’re putting away. Give yourself a tiny cushion but not much.
You should always be slightly uncomfortable at the end of each month.
So in that $5,000 a month example, if I made $7,000 I would likely put away $1500 with a $500 cushion.
Again, you want it to be like it’s living month to month even though you’re putting money away.
And let’s add one more thing to this: put the money away automatically.
It should be on auto-invest, auto-withdraw, whatever it is so you never think about it.
Give it a try.