The Rules of Wealth, 4th Edition

RULE 30

Start saving young (or teach your kids this one if it’s too late for you)

OK, it might be too late for you to start saving young. We can’t go back. But you can certainly teach your kids the importance of learning this trick. And I’m not suggesting we scrimp and save to be able to save. Saving should be something we naturally do. I guess it’s a trick you learn quickly if you are self-employed – or not, if you go bust. Every time you earn money you put some aside for VAT and tax. Failure to do so means scrabbling around when the return is due and you have to find it. If you put aside more than you need, the leftovers become the savings. Obviously you only fail to do this once or twice before it becomes a really easy thing to remember ...