Saving money, in the short term, is actually not very difficult. Even if your ability to earn money is not high, as long as you spend less than you earn, you will naturally be able to save money.

Everyone understands this principle, but how many people can truly practice it for a long time?

Some time ago, the central bank released the deposit data for July 2023. In July, the RMB deposits decreased by 112 billion yuan month-on-month, of which, household deposits decreased by 80.93 billion yuan.

In addition, the DT Research Institute also released the "2023 Young People's Savings Survey Report". The survey involved less than 2,000 people, of which 70% were born in the 1990s and 1995s. The results showed that there is a very obvious polarization in the savings ability of young people. Indeed, some young people are very good at saving money, but about one-tenth of them have savings of less than 10,000 yuan.

Saving money may not be difficult in the short term. However, from a long-term perspective, taking a person's life as a measure, it is not an easy task. Let's talk about the matter of saving money, is there really any secret to it.

What should we do to save money?

I would like to start with two stories. These two stories come from the book "The Psychology of Money". The author of the book is an investment writer. He has written many articles related to financial management and is loved by many readers. I have read his book and have benefited a lot.

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The first story:A technological genius, at the age of 20, became a high-level executive, holding several patents, and he had a strong ability to make money and was very wealthy. However, he spent money in a very tasteless way. For example, he would carry a 10-centimeter-thick stack of hundred-dollar bills with him, and one day, on a whim, he would have the hotel bellboy take it to the jewelry store to buy gold coins, and then use these coins to skim stones into the sea. Another example is that he broke a lamp in the hotel, and the hotel manager asked him to compensate 500 US dollars, but he directly took out 5000 US dollars and threw it at the manager, asking him to get out of his sight.

Money can solve many problems, but if you don't know how to use it well, it can also have the opposite effect. Although this technological genius has a strong ability to make money, his extremely childish way of spending money is very irrational. In the end, this genius teenager went bankrupt not long after.

The second story:

A hotel doorman, his name is Ronald James Reed. According to Wikipedia, he was an investor, a gas station worker, and an American philanthropist. He passed away in 2014, and his net worth was as high as 8 million US dollars. That year, 2.8 million people died in the United States, and fewer than 4,000 people could save 8 million, and Ronald James Reed, as a hotel doorman, was one of them.

How did he do it? He didn't win the lottery or buy lottery tickets. He just kept up with the pace of the times, buying a house when it was time to buy a house, investing in finance when it was time to invest in finance, and having children when it was time to have children. He just kept doing his current job persistently, making as few mistakes as possible, and through financial investment, relying on the power of compound interest, he eventually rolled up to 8 million US dollars.

These two stories tell us two truths about saving money.

First, a person's ability to save money has nothing to do with their knowledge level and professional skills. You see, a gas station worker and a doorman, their ability to save money far exceeds that of the technological genius.

Saving money depends on day-to-day persistence, and as time goes on, the accumulated principal will continue to increase. If you are inconsistent, you are destined to save no money.

Second, how much money you can save depends on how you handle the relationship between yourself and money. Many people's relationship with money is actually not healthy at all.

For example, when you have money in hand, you don't know how to manage it reasonably, let it be, and are unwilling to talk about money-related topics. Once you talk about investment, you think it's a scam and are unwilling to delve into understanding and thinking.However, if we carefully study and observe those wealthy people around us, you will find that the reason they are rich and can double their assets every year is because they use investment and financial management tools. They are very good at using the formula of compound interest.

So, do you now understand why you have no money and can't save money?