People run on money. Everyone is depending on these plastic bills and metal coins to get them through life favorably. The idea here is that since money must be obtained through efforts, you will be working until the day you die. Luckily, David Chilton, the significantly older and marginally wiser man offers his unique perspective on the world of money in his book entitled The Wealthy Barber. When it comes to paying for your future in the present, one must not fall into financial traps, such as saving, spending, and investing traps, but rather, learn various techniques to help you prevent it from happening. Paying for things today is great, but paying for your things in the future today is even better as your life progresses.
In order to have
…show more content…
At the end of the year, the $20 is now $240 spent on food you could have eaten for cheaper at home. This is the trap that the lizard in our brain causes; it decreases our motivation to save. On the other hand, Chilton provides us with insight that saving, when done right, can be quite simple. If someone were to save only 10%-15% of their gross income, their savings would grow faster and they would have enough to pay for their retired life in the future; paying for the future today. It all starts with self-discipline by using various techniques to let you lizard calm down in order to make rational saving patterns. Aside from saving your gross income, Chilton also recommends that people pay themselves first, and then spend on a budget. Or in other words, save first. Spend the rest. Good. (Chilton, 2011) stated that “Many average-income Canadians carry $15,000 to $25,000 credit-card limits” (p. 19) and this is an invitation to disaster. Saving becomes a lot harder when your credit card limit is not priced at something you can afford. This leads to over spending and your savings will deplete as in coordination.