To live well, practice the 3-S System:

• Save it.
• Share it.
• Spend it.
  

Here’s why:

Saved money brings you riches
Try to save a predetermined percentage of your income every time you get paid. If you can’t do it when the mortgage payment is due, take the percentage out of your other pay checks. If you have a retirement savings program at work, ask your employer to deduct a percentage for you. If your employer matches your contribution, do all you can to get the maximum amount your employer will contribute. It’s like giving yourself a raise.

Savings is a powerful tool because the money you put aside actually goes to work for you — earning more money for you even while you’re sleeping. And the earnings compound day after day, year after year, over and over again.

How can you afford to save when things are tight? Many people spend what could be their savings on credit card and other installment debt. That’s the same as giving yourself a pay cut! For example, if you owe a balance equal to half your annual income and you’re paying 18% a month interest, that’s like putting up with a 9% cut in pay. Who can afford that?

Reducing your installment debt is like getting a raise. Eliminate it and you’ll have additional money to start saving a set percentage regularly. The key is to spend less than you make. Work hard at that and start saving as soon as possible — and your money will go a lot further and last a lot longer.

Shared money brings you wealth
Give a little away, help others in greater need, discover that it does not ruin you, and learn that you have a bit more than you absolutely need to survive. When you know that, you are unlocking The Secret of Wealth.

Until you know that — no matter how much you earn — you will never experience a sense of abundance, which is the reward of true wealth.

Spent money pays the bills
Spending money accomplishes one thing. It lets us pay the bills for the goods and services we need. That’s a lot. But some people expect even more from spending. They expect that spending money will improve their self-esteem or their social standing.

Seldom does that happen — and never is it a good long-term strategy. It’s like selling the foundation to our home to build a second floor. The results are impressive only in the short-term. Eventually, they’re disastrous.

Only if we learn to save and share will we eventually earn the respect of people with good judgment.