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The 10 % Money-saving Rule

It's great having surplus money to invest and play with. But only those who have enough money to invest can affirm, "money is working for them" instead of them having to work for that money."

But what if you don't have the money to invest? How can the poor man squeeze out money to invest?

Some Prime Values' visitors have complained about "not having enough money to invest" - common issue that's often heard in the physical World as well.

There's hope even for those who earn low incomes.

If you think this is your case, then check the 10 % saving rule below and it might actually work!

The 10 % Savings Rule

It actually works in the vast majority of cases!

Plain and simple: save up a global 10 % per month and use that amount to invest.

All right - many will say, "I have no surplus 10 %" or "I am already indebted, I can barely pay my bills", "I'm already broke".

Some might find they're rather in negative territory with -10 % (debt), rather than 10 % surplus to save per month.

But this 10 % savings rule doesn't require any surplus to be able to invest, but rather becoming more economic by smart financial planning: responsible spending and consumption reduction.

Plan ahead and stick to more rigid rules that block you from spending 10 % of your monthly income.
Put the 10 % away way from the beginning instead of struggling to leave 10 % unspent.

Some will consider this a "rough squeeze", but for many it will work. It might just work for you!

How Ordinary People Can Save 10 %

Most people can save 10 % of their monthly income. The only reason they do not is because they choose not to do so - being trapped in the wrong mindset. Yes, it is indeed possible in the vast majority of cases.

Spending 10 % less on food shouldn't starve you. Those who spend on alcohol, the smokers who smoke or those who spend on some form of entertainment do know that these are rather unnecessary expenses, but oddly it's often the poor and depressed who burn their money into these products and activities the most.

Trim your expenses on alcohol, coffee, cigarettes...

As for food: consuming more green is healthier. Sweets, meat tend to be among the most expensive food items.
Don't go on hunger strike, just rethink the way you're spending on food.

Consume less electricity: there are lots of methods (like pulling the plug for the night, instead of just leaving the electrical equipment like PC and TV in stand-by).

Also: if you're working at the computer, then try becoming faster, more efficient. Thus, you can save hours of electricity, which all (positively) add up at the end.

Do watch the counter periodically to see whether you managed to reduce consumption by your new, more economic lifestyle. 10 % less usage will reflect in the electricity bill!

Shrink expenses on telecommunication. Nowadays with e-mail, Skype and other methods, it shouldn't be too expensive to communicate to long distances.

Reduce expenses on costly entertainment and travel.

Selling old objects (from old car parts, furniture to old books) will help you save.

These were just a few ideas to make the poorer person see that indeed - the 10 % savings trick can be done rather easily. And you don't have to take money away from education, nor from healthcare, nor from mortgage loans etc.

In the worst case, you can still achieve the 10 % savings bi-monthly, if not monthly or, at least save 10 % of your yearly income.

That small 10 % can mean a huge difference in times of economic crisis.

If it can get you a single ounce of silver per month, even that is something! Silver is volatile, which means that abrupt spice jumps can occur. Then, your investment will have brought returns.

Obviously, the more you can save, the more you can invest - obviously better. But investing opportunities are there even for the people with the smallest incomes.

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