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Showing posts from November, 2009

Savings, System and Security (Part 2)

It's been a while since my last post, as I had been busy the past weeks.

Today's post shall be about 'System', part 2 of the 3 Ss.

In today's context, when our income are usually transferred to our bank accounts, it is vital that we set aside our savings in a separate bank account.

Why? I'll attribute it to a phenomenom I call the 'Plateau Effect'.

Everyone has a comfortable level of savings in-built in their subconscious mind. (In T. Harv Eker's book, Secrets of the Millionaire Mind, he described it as our individual 'financial blueprint'.)

This means that when we reach our comfort level, we will subconsciously tell ourselves that "Hey, I've been saving hard all these while and now I have enough savings. I can loosen my purse string and can spend a little on that (insert anything of desire ) that I always wanted!"

And what happens is that you'll save lesser (or stop totally) as it suddenly seems like there are lots of thi…