Pay Yourself First
People have a tendency to put themselves at the end of the list of people that receive money. When they receive their paycheck, they go down this real or imaginary list. Unfortunately for most, the people at the bottom don't receive anything. Guess where most people are on their list? - "The Bottom".
Did you know that most people (even those that have a lot of money but are not wise with it) are only one paycheck away from losing everything.
You have to put yourself at the top of the list and negotiate with others, if necessary.
T Harv Eker, the author of "The Millionaire Mind" teaches a system where you should have 6 jars and your income should be divided accordingly: (the words after the percentages are my personal take on the jar)
Financial Freedom Account (FFA) = 10% This is the "can not ever" touch account. This is the account you pass on as a legacy (and teach the same principles as you pass it on).
Long Term Savings For Spending (LTSS) = 10% This is the account for the big ticket items
Education (EDUC) = 10% Education means advancing you (whether it is a career, self development, books, seminars)
Necessities (NEC) = 55% You have to learn to pay everyone you owe out of this account (this includes taxes)
Play = 10% If you are not having fun, then is it all worth it? As a matter of fact, how hard will you continue to stay in the game called life if you are not enjoying it. There is an old saying and I believe it to be true - "Most die by the age of 25 and just aren't buried until they are 65". Don't be one of those people
Give = 5% The act of giving will do more for you than the people or things you give it too
(Note: For those that believe or want to "Give" 10%, then the adjustment is to "Necessities" which would convert to 50%. Everything else stays the same)
We know a lot of people can not start this system immediately. This is "the future" to achieve too. In the meantime, move towards it by making the necessary adjustments.
For some of you, just take $1 (that's right $1) and divide it up in these proportions. You will begin to train yourself that this is how you divide your money. We all have to start somewhere.
By the way, if you can do that $1 daily, that would be awesome. If it has to be once a week (just be consistent on which day you do it). Every Monday to make yourself look forward to Mondays. Whatever works for you. The key is to just get started.
It ain't right. It ain't wrong. It's just my opinion.
Your Uplifting Life Partner
Ron Simplified Myers
Comments
Appreciate the visit and comment Sandy. I agree the key is to get started.
Thanks, Ron! This is a really good post with great suggestions on how to manage our money. Everyone is different and will need to adjust the percentages but at least these are guidelines on how to start. I'd like to tray it ... and will.
Thanks Fam for the support - Merle Gibbins, Carolyn Coleman-Grady (getting started is crucial) and Terri Pattio (I am with you. If you aren't having fun, you need to make some changes lol)
I believe 'PLAY' should be more, say 15%. I love having fun and enjoy doing my home business. Never a dull moment for me, because I love to make people laugh as well. Thanks for posting this in the community Ron. Shared via Syndication Automation.