Most of the time it seems, we often fall into the trap of caring for others and forgetting to secure our own futures…or expecting someone else do it for us. From meeting deadlines of our jobs. Being there for the family, and striving to be the best, father, mother, or husband. However, you Don’t have to gamble your future this way. You can build upon that same skill you use at work and at home to become financial independent and live the live you want.
You Don’t have to take thought off the fact that, you are the only person you can truly count on to make your ideal life a reality. When you take responsibility for your life path an amazing thing happen; you see so many opportunities and choices that you Don’t see before, when you then combined this new outlook with actions you can go places you only dream of. And the number one action, you can take today toward your financial future is to set aside at least ten percent of your paycheck for your future. Every paycheck.
Pay yourself first:
This philosophy of paying yourself first came from George Carson’s book, “the richest man in Babylon.” Which was written nearly a century ago. And it’s message still holds true today, despite how the world has changed. In fact. Nasdag named it the number one proven way to save money.
Who do you pay first? If you’re like most Americans, you’re probably paying everyone else first. And then patently wait the next paycheck. -your rent/ mortgage, groceries, utilities, car payment, insurance, etc. But if you want to get above average, and get your dream realizes, you’ve to pay yourself first and all those bills last.
When paying yourself last, you are actually a financial trader but the worst of it, is because you are trading your time for money, and it can only make you feel like hamster on a wheel, running and running but never able to make any progress toward your financial goals.
People who choose to pay themselves first allocate money to the asset column of their balance sheet. before they’ve to pay there monthly expenses. Essentially you set aside a specific amount, right off the boot, and then live off what leftover. And that’s how wealth grows.
When you begin paying yourself first, it will feel totally backward, because you’ve been doing the wrong for decades. Each month set 10% percent of your income, toward opportunities not another flagship car. Rather for a cashflow investment.
Get out of bad debt.
Why debt have been a great leverage the rich and smart has being able to use it for there advantage. And at same time it has being crippling to the order majority.
For our current economy to keep growing it needs smart borrowers. People. who can borrow money and get richer, not people who borrow money to get poorer. Once again, 90/10/ rule of money applies-10 percent of the borrowers in the world use debt to get richer- why 90 percent use debt to get poorer.
Debt is a powerful tool and also the worst device, depends on your financial education. What did I mean by using debt to your advantage? Before you can know how to use debt to your advantage you still have to understand, that there are good and bad debt. To make it plain and simple. Debt use for buying liability (Bad debt). Debt use for buying asset (Good debt). good debts makes you richer why bad debt why bad debts make you poorer. Example of bad debts. Are cars, vacations, clothes and even emergency funds and even emergency funds for this simply don’t have cash to cover.