The Law of Success, Lesson 4, The Habit of Saving (My Review)
“Man is a combination of flesh, bone, blood, hair and brain cells. These are the building materials out of which he shapes, through the Law of Habit, his personality.” Napoleon Hill, The Law of Success in Sixteen Lessons, (Wilder Publications, Inc, First Edition, ©2011), page 131.
The Law of Habit
Any act, indulged in repetitively a few times, becomes a habit. The mind and personality become an accumulation of those habits.
Those habits then result in the actions that we take that eventually become like a program in a computer because it then begins to happen without forethought. It becomes automatic.
The same habit and the programs created by it can create the very “walls of limitation” against which many of us struggle to move from low income to excellent income.
Your mind can create a type of financial thermostat that will keep you stuck in a particular income bracket. The good news is that you can adjust that thermostat by harnessing the Law of Habit to benefit you.
However, it’s important to make sure you accurately understand this law correctly.
It starts with being crystal clear about your Definite Chief Aim. Once you’re clear about that, apply the Law of Habit to keep your Aim always in your mind.
That process will naturally result in an increase of income.
The Habit of Saving
While that’s happening, develop a habit of saving your money. If you base your savings rate on a percentage of your income then your savings will increase at the same rate.
The Law of Habit can work both to your disadvantage and to your advantage. It depends on what you prioritize foremost in your mind.
If you focus on your Definite Chief Aim of prosperity, you’ll gradually inherit more prosperity. Share on X“Any idea that is deliberately fixed in the mind, or any idea that is permitted to set itself up in the mind, as the result of suggestion, environment, the influence of associates, etc., is sure to cause us to indulge in acts which conform to the nature of the idea.” Napoleon Hill, The Law of Success in Sixteen Lessons, (Wilder Publications, Inc, First Edition, ©2011), page 133.
If you’re focused on the Fear of Poverty, then you’ll get more poverty. If you focus on your Definite Chief Aim of prosperity, you’ll gradually inherit more prosperity.
The Slavery of Debt
Being in poverty alone is bad enough. Yet, it’s not always enough to crush a person’s dream.
Add in too much debt and it becomes even more difficult to pull out of poverty and move into prosperity. It becomes a vicious, self-reinforcing cycle.
You need to be willing to sacrifice what it takes to stay away from bad debt.
There are basically two types of debt. The first kind are depreciating debts. For example, buying luxuries like cars, boats, and going out to eat. Some financial advisers call this, “bad debt.”
The second kind are either appreciating expenditures or something that can be easily liquidated for the same cost at which they were purchased. This is sometimes called, “good debt.”
Any act, indulged in repetitively a few times, becomes a habit. Share on XAn appreciating debt example would be buying a home. Most real estate increases in value by at least 3.5% per year, even after market corrections.
How to Master The Fear of Poverty
- There are two vitally important steps to master the fear of poverty.
Stop buying on credit. Especially the depreciating expenses. Gradually pay off any and all debts that you acquired. - Replace the habit of debt with a better habit of saving and increasing income. Find a way to live without the depreciating expenses.
How Much Should You Save?
I have a little different answer to this question than Mr. Hill that I learned in some training I received a few years ago. It’s called, “10-10-80.”
Give 10% of your earnings to your church as a tithe. When you’re consistently obedient to God, He’ll bless you. It’s a scriptural promise.
The next 10% is put into savings that you can use for investments such as stocks, real estate, or some other method of buying and selling to receive gain.
The 80% is what you live on.
When you follow this strategy the growth is solid and impressive.
Even if you put 3% or 5% into savings, it begins to accumulate. The idea is that you don’t use it for regular living expenses. It’s there for emergencies and positive cash flow investments.
It’s truly nice and freeing to watch your savings steadily grow over time. As a self-reinforcing cycle it encourages an expanding mindset of prosperity.
- What income bracket are you stuck in?
- Which habit needs to change first for you to become free?
- What is your Definite Chief Aim?
- How much are you going to be putting into savings on a regular basis?
- When will you discontinue the accumulation of bad debt?
The Habit of Savings is a crucial part of the Law of Success.
Apply it to the best of your ability and let me know how it goes for you!
Here’s to your Success!
John Mason
