#340 Entrepreneurship & Business – S2 E5 – The importance of saving money

Über Geld spricht man nicht, Geld hat man.
Translation: “You don’t speak about money, you just have it.”

German Saying

In this world, we are not supposed to talk about money. Right? Right!

How dare you are!? Shut up! Don’t talk about money!

But where does this behavior come from? Money might just be an essential part of life, deal with it. Whatever you want to do in life, without money, things will get only worse.

You are thinking about starting your own company? You are thinking about taking the next step with your business idea? Well, before you do that, lets start talking about money first.

Are you saving up your money, or do you spend it rather frequently the moment it comes into your bank account? People these days have a very unhealthy attitude towards money. It seems like a lot of people are living beyond their financial limits. Instead of buying things with money they have, they rather pay everything on a monthly basis and already start to invest the money they expect to earn in the future.

Well, hopefully there is not another corona situation coming these peoples way!

Sure, it might not always be a bad decision to finance or lease something, especially in these days. But still, if people are living constantly above their financial limits, this can’t be good for them.

In order to get going with your business idea, well, you will need money, that’s for sure.

How much? This highly depends on what you are planing to do. Starting a small side project, or the next car manufacturer empire?

But the question is of course never how much money you need, but rather how much money you can save up. Let’s do a little test. Are you really saving up your money on a conscious basis? Can you tell me how much percent of your income you save up every year?

-5%, 0%, 5%, 10%, 30%, 50%?

One day or another you will wake up and get the chance of your life time. Will you have the money to get going on that day? Or will you say “Sorry, but I don’t have the money”.

There is great opportunity in this world, but only for the people who can afford to take them!

Without the skill of saving up your money, well, it will definitely not getting easier in life.

Around the globe, people can see that the rich people are getting richer and the poor people poorer. But why is this the case?

The opportunities in this world might be the same, but still, so many people seem to do something wrong.

How does someone save up money?

Generally speaking, this is not really possible to say. Sure, the moment you spend less money than you earn, something stays in your bank account. That’s the law of math. But this is not really helping us, is it?

In life, people all over the world will experience a very similar situation. There is some money going in on the one side and directly leaving on the other. You need to pay your bills, your rent, your phone service and whatever else you have acquired over time. Can you avoid paying this? Maybe, but it is not so easy. I mean, you can try to reduce those costs, but they will still stay there most of the time.

Ok, makes sense, but now I haven’t eaten a single thing! Exactly! Now you need to survive in the society you are living in. You need some food, some cloths and so on. But it doesn’t stop there! Right? Right! Now is the time for you to go and buy stuff that you actually don’t need, but the world taught you otherwise. Therefore you travel the world, buy yourself a fancy watch and go into restaurants all the time. Is this something you shouldn’t do? Well, I am not in the position to judge about you. Remember? I am just one of you guys!

And there we have it. We are getting closer! If you do this properly, which I can only highly recommend you to do, you will see exactly how much money you spend and more importantly on what. The funny thing about it? You can do it for your past as well. Just take the time and figure out how the past five years of your life were financial wise. How much money did you spend and more importantly for what?

We might be not able to look into the future, but if history doesn’t repeat, at least it rhymes!

Are you living above or below your financial situation? Do you spend all the money you have, or do you save up a lot of it? Look at how someone manages his or her own money and you will learn much more about the person than you would otherwise in a conversation.

Saving money means having discipline. It means being in control of your decision making process.

In the end, it is totally up to you how you deal with your own financial situation. There is definitely no right or wrong. But the important thing here to understand is the following. You need to be satisfied. You need to be able to look at your situation and say, “Good job! This is exactly what I wanted in my life!

Saving money? Cut your expanses and/ or increase your income.

How much money is enough? This is a question you need to answer on your own!

Go get yourself an overview about your financial situation and start saving more money from this moment on!

After knowing your financial situation, you can start taking the right decisions and save the money which you will need in order to get going with your business ideas.

See you next time!

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