Billionaires do it; your neighbors do it. Don’t get caught messing around with your personal finance, while those around you already know better.
You see, no matter how successful you are, or how much money you’ve earned, there is a good chance for you to go broke if you don’t know how to manage your money well. Seriously. Just ask MC Hammer, Britney Spears, and Mike Tyson.
By “managing your money well,” I don’t refer it to financial charts analysis. Instead, it refers to some common-sense, best-practice in growing your wealth in the right way.
Want one tip? Here’s a good one: Pay yourself first.
Here’s how it works: Whenever you receive your income, always, always set aside a certain amount – say 10 percent – into your savings account, mutual funds, or any other investing vehicles – best done automatically.
Confused? Let’s listen to Stefan Pylarinos as he explains the concept in a crystal-clear way:
A lesson learned: If you don’t see it (the money you’ve set aside,) you will not tempted to take it. If you don’t take it, the size of YOUR money bag will grow. It’s as simple as that, really.
The key here is on automation: Without it, paying yourself first is pretty difficult to do. People don’t have enough will power not to use that 10 percent for “important” expenses. Moreover, people don’t have enough discipline to do this for a lifetime. So, again, automate things.
Ready to give it a try? I already did, and it was just simple but brilliant!
