Money Management
Advice
Wanna know the best money
management advice ever you can get? Here it is...
Let's say that you are getting
regular monthly salary from work and you are happy with it.
Now, at the end of the month (and most of the time, two days
after you get your paychecks), you wonder where all your money
is gone.
You begin reasoning. 30%
of it goes to house mortgage. 20% of
it goes to car payment. 10% of it goes
to credit card payment. 5% of it goes
to utility bills. etc, etc, etc...
"That should be fine. I've
got all taken care of. Next month, I'll get another paycheck
and the same cycle goes on and on... enough for me to survive
the whole life."
Well, you gotta be careful
now. What happens if your car broke
down? What happens if your kitchen needed
renovation after a heavy storm last night? What
happens if you suddenly forgot that you've overspent your
credit card? What happens if you fell
sick?
Things could be worse, and
now is the time that the cliche "Fix your roof on a sunny
day" is very much true to you. You don't
want this to happen to you, right? There
could be thousands of things that could go wrong in our lives
but unless we realize that we need to prepare for the worse,
we'll never get ahead of ourselves.
Sometimes, fixed salary could
be a good thing for you because you can plan with what you
want to do with your money on a predicatble basis. Though
I strongly believe that you still need a secondary income
- preferably a recurring secondary income - to improve your
financial situation at any level.
And, the best plan to improving
your financial situation is...
PAY YOURSELF FIRST.
That's right!
Regardless if you have $300,000
of house mortgage or a $100,000 savings in the bank, make
it a habit to pay yourself right after you get your monthly
paychecks. This habit will definitely help.
Let's see...
You've been paying everybody
you owe every month. You pay the bills, the banks, the mechanics,
the who knows who and you actually get nothing, except settling
the scores.
There's just another person
that you forget to pay - that is YOU.
Imagine yourself as a bill
collector on yourself. No matter what, you have to pay yourself
at the beginning of every month (I suggest 10% of your salary.
The more is better) - or else you cease to function as yourself.
Never fail to pay your SELF
and only after you pay yourself, then you pay the others.
Hard?
Yes, at first, but once you
put the action of "Paying Yourself First" into habit, you'll
actually enjoy doing it, knowing that you do good deeds to
yourself. Try it once. Then do it the second month. And then,
another... and another. PAY YOURSELF FIRST because you deserve
much more than the other bill collectors. That's great money
management advice!
| Authors Details: Money Management Advice
- Zamri Nanyan Web
Site |
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