Noel Whittaker
Noel Whittaker

Make saving a commitment

TODAY I'll discuss a sure way to wealth. I call  it the "guaranteed secret of wealth" and it's based on the concept that money in your wallet gets frittered away, and that everybody will pay their commitments and spend the rest. 

This is why nobody has any trouble paying their PAYG tax or the taxes that are levied through excise and sales, gambling and fuel taxes - they are taken automatically.

Some years ago a person I'll call Pat, came to one of our branches to ask about investing $6000. This is not unusual except that Pat has few assets, lives on a government benefit, and rents a cheap unit.

You would be right in assuming that Pat is like many who live near the poverty line, through circumstances that are often outside their control. What makes Pat different is that she has no intention of staying where she is. She has that resourceful spirit that once made this country great.

The obvious question is: How could somebody in her situation manage to save up $6000?

The answer is enlightening. Pat has a simple belief - "I never spend a $5 note". Every time a five dollar note comes into her possession it goes straight into a small compartment in the back of her wallet. As soon as she gets home it's transferred to a sealed money box.

She admitted; "On a few occasions I have broken a $10 note and asked for the change in coins so as not to get a $5 note, but that doesn't happen too often".

This is a classic example of the principle that we all pay our commitments, and spend the balance. All we have to do to create wealth for ourselves is to start to make saving a commitment, instead of something we try to do with what's left over.

Noel Whittaker is a director of Whittaker Macnaught Pty Ltd.  His advice is general in nature and readers should seek their own professional advice before making any financial decisions.  His email is

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