The Secret for Building a Cash Surplus​

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

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

● You have the option of getting into activities you enjoy

● You can get out of activities you do not enjoy

● You have more choices of where to live

● Emergencies and potential emergencies are less stressful

● You can help the people you love with their emergencies

● You do not feel trapped by your job

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

The Problems

Building a surplus of cash for yourself can be very difficult. An immediate need feels more stressful than a future need. Or you earn some money and want to reward yourself.

Even if you manage to save some money, you are tempted to spend it. 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 a lot of self-discipline. However, even though it is difficult to save money each month, 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 arrange bills that are actually savings. You won’t miss the money.

For example, you 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.


1. Decide how much you wish to save each month. The amount 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%. 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 good ideas.

2. Then find a bill or system that will force you to save money. The need to pay the disguised bill must be as urgent as any of your other bills. In other words, you must pay it each month, without fail.

3. The cash reserve must also be difficult for you to spend. For some people, a small penalty is enough to leave the money alone. For others, it must be more difficult. For example, you can set up a joint account so another person must approve your withdrawal from your savings.

4. Finally, the saving account must also increase each month, by itself. All banks pay interest if the money is flowing into the right type of account. Anything is better than nothing!

Make this small, but important change to your finances and you will have more options for success in your future!