“The difference between the wealthy and the not wealthy IS people who are good with money manage it. They take charge of money and make it works for them. They don’t work for their money they manage the money that works for them. Get it? You can too!
If you want to become wealthier you must get your money working for you. You need to learn about money and wise investment choices. You need to stop trading your hours for dollars. There is only so much you can exchange when you trade time for money.
I’ve shared the principles of Pay Yourself First and Save And Invest. If you can only do a dollar a day or a week that is better than nothing. The point is to learn to pay yourself first and ultimately invest it. If you can do more do as much as you can. 10% of your paycheck. 20%.
Money Will Stay Away Unless You Know How To Care For It
Millionaire, Harv Eker introduced us to the notion of keeping separate envelopes, mason jars or bank accounts. Whether the idea originated with him or elsewhere, I don’t recall. Divide up your paycheck and deposit a portion in each account. It works like this.
Take 10% put it into your Financial Freedom, envelop, jar or account. You never touch this. You save it until you can invest in a form of passive income generating business or investments. Leave it alone. Be faithful to contribute the % each paycheck. Do not touch it!
Every 30 or 60 days remove the money from the envelops or mason jars and deposit into the highest yielding interest accounts. CDs still are higher than savings accounts in this day and age when banks give you nothing for using your money. Investigate this for yourself.
There Is A Reason The Rich Get Richer And The Poor Get Poorer
Take another 10% put in into A Long Term Account. Use this account to save for something big. A new home, car, television, a vacation, your kids education. Save something from each paycheck.
These two are your two long term accounts. Do not take from them except as specified. Use the following accounts similarly and do not rob from them either. Discipline yourself to pay yourself, manage your money, save it and invest it. The benefits will be great if you do!
Another 10% goes int Education. This is for your personal and professional development. It is so you can do seminars, workshops buy online programs, books, DVDs and audios. It is money you spend on your education and self betterment. Use it on an ongoing basis.
If You Want Something You Never Had …
10% goes into Fun Account. This money you spend at the end of every month. You blow it or treat yourself in a special way. Go out for a dinner, a special spa time, a men or women’s night out. Gift yourself. Have fun. Saving should have rewards. Reward yourself!
5% is a Charity Account. This is for giving back, contributing to others. Tithing. Helping your favorite cause. This is how you can help make a difference in your neighborhood, city, state or the world. It is important to give and to receive so learn to do both better.
That is 45% of your pay check you sock away in special accounts. If you save at home keep it somewhere safe and be sure to put it into actual accounts accounts soon. At least every 30 or 60 days. . Don’t stop pile cash at home where it can be stolen or burned up.
… You Have To Do Something You’ve Never Done
Look into getting the highest return accounts or CDs you can and put it there as I previously mentioned. Always seek professional advice when it comes to where to put your money, whether into banks, retirement accounts or investments. Lean on the learned!
The remaining 55% you use to your bills. This is your Necessities account. If you presently can’t do the percentages as suggested above do a variation of them. 5% each and 2.5% in charity. Find a way to save and manage something even if you divide up a dollar.
Whatever you do, the important part is consistency and commitment. Keep doing it. Discipline yourself. Learn to manage your money. That is why it is better to do it with a dollar every paycheck than to not do it. Begin today. Get some envelops.
Your Salary Doesn’t Make You Rich – Its Your Spending Habits
Develop the habit of managing and growing your money. If you have lot’s of credit card debt seek responsible professional services that can help you get out of debt as fast and easily as you can. This is important. It is difficult to grow if you are paying off.
Robert Kiyosaki, Rich Dad Poor Dad author, had a great concept that stuck with me from the moment I heard it. Obviously, there are assets and debits. Assets are whatever has value and debits are whatever you owe. Your home could be an asset but it might not be.
For example, if you have a duplex and one half rented. If the rent covers your mortgage payment and you have a little left over, then your house is making you money not draining your accounts. Some things can be an asset or a debit depending on how it is used.
Do Not Save What Is Left After Spending …
A car could be if an asset if your company is leasing it to you and makes use of tax advantages or deductions. If you have a monthly payment that is debt. That is money you kiss goodbye every month along with your gas and electric bill. It is money out the door.
Robert’s concept was Feeders and Eaters. Similar to the Law Of Attraction principles of Increase or Decrease. There are either Feeders which increase or Eaters which decrease your money and wealth. A car or house payment is usually an eater. Unless…
Monthly, you pay out money. Remember, if your business leases it and there are some tax advantages it could be a Feeder. The same is true with your home. It could be draining you of money or you could be making money with it. Look into this for yourself.
… Spend What Is Left After Saving
Remember to seek reputable financial advice to understand and utilize these notions and tax strategies. Become aware of your money flow. Money moves, it does not stay put. If you are spending more than you are saving or earning your money will not last long.
Ask yourself this: Is Money Coming In and am I growing my wealth?Am I getting fed by Feeders or am I decreasing my money by spending? Is my wealth being consumed by Eaters? Which is it? It is always one or the other.
This is why many lottery winners, sports figures and celebrities go broke fairly fast. The never learned to manage their money and get it working for them. Instead they buy large. The have the same programs rich as when poor. So most return to being poor.
When You Buy Without A Plan – Emotions Dictate Your Spending
The live from their prior programming. Anything that doesn’t contribute to your overall wealth and long term happiness is an Eater. This concept really helped me curb my spending and begin thinking about where I want to put or invest my money.
It helped me decided whether or not I really needed something or whether I just wanted it because I wanted it. It has helped me be responsible with my money. I look for Feeder opportunities. These notions are worth their weight and impact in gold.
Practice Responsible Money Management. Take hold of the money you have and learn to control it. Discipline yourself. If you are like most of us you were not taught much about money. Instead what we learned was what we heard and witnessed.
Start Where You Are – Use What You Have – Do What You Can
It is time to get free of prior conditioning and learn the mindset of creating and keeping wealth. As you learn be glad you have the opportunity. Study wealth. Learn about money. It is a useful tool to help you live the life of your dreams, help others and the world. Be grateful and celebrate everything!” Rex Sikes
Have a beautiful day!
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Horizons photo used with permission of Phil Koch.
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