My first paying job at 18 years old and before my first paycheck, the boss had a conference with all the youngsters in my group in what in my memory seemed to be an introduction to the working world. He suggested that we open more than one savings account to spread a percentage of our paycheck across them. That was my big introduction to saving.
The logic I adopted from him is the idea that if you spread your money around thinly at first, you would find it hard to withdraw any because it would appear as if you don’t have enough. A loose example: If one has 10 accounts, each containing $100… for many of us, it would not readily register that we have $1,000. Another thought: If someone wants to borrow 100, you would likely struggle to withdraw that money, because it either means emptying an account or nibbling at multiple accounts. On the other hand, if you had it all in one account, you would readily see you have $1,000 and could talk yourself into loaning that $100.
So I started out by having money in different places. While doing this, I found myself repeating a common saying that I first heard from one of my older brothers; ‘It doesn’t matter so much how much money you make but rather what you do with what you make.’ We have heard enough stories about people who made an insane amount of money during their work years but still ended up broke. However there are also many stories of others who made a little but managed to retire on solid financial grounds.
Hearing stories of the latter inspired me, and as a result, I was never quite concerned about how much money I was being paid, but rather, what I did with what I made. And so for me, I started by opening multiple accounts and stashing money into them whenever I got paid.