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TipsForSuccess: The Secret of How to Build a Personal Cash Reserve


The Secret of How to Build a Personal Cash Surplus

If you had saved 10% of your income since you started working, how much money would you have now?

Having a big savings fund has many advantages. For example:

* You can negotiate better purchase prices

* Emergencies and potential emergencies are less stressful

* You can help the people you love with their emergencies

* You do not feel as trapped by your job

* You have the option of getting into activities you enjoy and out of activities you do not enjoy

* You have more choices of where to live

* You can devote more time and money to the activities and causes you love

Is saving money difficult for you? Perhaps your immediate needs are more stressful than your future needs. You may not have enough to cover current bills.

Even if you manage to save some money, you are tempted to spend it. Or you have an emergency or find something you really want to buy. You promise yourself you'll pay it back to your cash reserve, but you never do.

Saving money takes more self-discipline than most people have. It is difficult to put money aside each month into savings. However, most people can pay their bills.

The Secret

"When a surplus is made part of the 'need' by disguised outgo, a surplus occurs. Only then will it occur. It will not happen otherwise." -- L. Ron Hubbard

If you pay your bills, you can also save money. You simply make your savings into a bill. You won't miss the money.

For example, you buy a house with a mortgage. A small part of your house payment goes toward the purchase and is "saved" in the real estate. It may not be much, but it is better than nothing.

Another example is to arrange a monthly debit from your checking account into a saving account. Any bank can set up a savings plan for you.

Certain credit card programs allow you to make monthly payments into an investment account, such as savings accounts with insurance companies or banks. The amount you authorize is automatically charged to your credit card each month.

You can pay money toward a future purchase by making an agreement with the group you want to buy from. For example, some colleges allow you to freeze the tuition, if you make monthly payments.

You can also sign up for your company's payroll savings plan or retirement plan. You tell your employer how much to save for you. Your savings is withheld from your pay, just like your tax payments.

Even though opportunities to create a bill that becomes a savings account are not widely promoted, they are available.


Decide how much you wish to save each month. The amount you pay as the disguised bill should not be so high that it becomes a burden, but you might be surprised how easily you can live on 90% of your current income when you are saving 10%.

The need to pay the disguised bill must be as urgent as any of your other monthly bills. In other words, you pay it each month without fail.

The cash reserve must also be difficult for you to spend. For some people, a small penalty deducted from your savings is a sufficient deterrent. For others, the account must be a joint account meaning another person must approve your withdrawal from your savings.

Then find a bill or system that will force you to save money. If none of the above examples fit your situation, talk to someone at your bank, at your job or at an investment company. You might also ask people who have made themselves wealthy as they will have several good ideas.

Copyright © 2007 All rights reserved. Grateful acknowledgment is made to L. Ron Hubbard Library for permission to reproduce selections from the copyrighted works of L. Ron Hubbard.

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