This series of blogs will talk to you about the importance of paying yourself first - the most powerful money management system I have ever known. Introduced to me in a seminar by a success coach last year, then tested and proven by the best selling personal finance authors I have come across in my self-education, this simple-yet-effective wealth management is the best thing that I've ever known about money and this can help me and you keep track of on the road to financial prosperity and freedom. And I wouldn't preach about this if I don't walk the talk.
If you got here by accident, I advise you go back to the introductory post about paying yourself first here so you could go along with the ride smoothly.
By far if you have been following this series of fortunate, and extremely basic, method to get your finances on the right track, just as you wanted, it might as well be very obvious as to what the last piece of the puzzle is going to be in this "pay yourself first" practice.
If you have gone through giving back and preparing for the unexpected, then this one right here can most likely be the key to unlocking the door to financial freedom. Of course, it takes a lot of discipline, patience, and faith to get it done.
Growing up as a kid, I always thought that money can simply be placed in what we call piggy banks, where you drop coins regularly or as needed to and make it act as your "savings account". Actually, that technique did not mean much to me for reasons I don't have to uncover.
As I matured up to the point when I finished college, I thought money can just come and go and while you have it, you ought to spend it, rather than lose it all (take it from someone who used to gamble and spend till the last centavo in college).
Then a seminar on money management, coupled with self-education on personal finance and trainings had me realize a number of things that have to be considered in relation to this post:
- To end up with little or no money as you get older can be very risky to your health
- Almost all people have savings accounts in the bank - which is not bad, but they only yield less than 1% a year - and are using them as vehicles to achieve their financial objectives
- Savings and investments are two different terms
- Only a few people are aware of investments and how they work
- Inflation kills your money like no other
If you are reading this, and you have absolutely no idea what I'm talking about above, let me try to simplify them all in one sentence -
We all know how to work for money. Unfortunately, only a few know how to make money work for us.
True? Or false?
"So how exactly do I make money work for me?" you may ask.
Before I go into that, let me remind you that the focus here is on paying yourself first. And the last, but maybe not the least, important component of the money management system is a fund dedicated to either as a start-up capital for a business of your choice, or a fund specified to make your money grow instead of just sitting around in the bank or in your piggy bank.
As John Calub, the Philippines' number 1 success coach, would say - it is for Financial Liberation.
To be financially free. To have more money in order to make ends meet and live comfortably today and tomorrow.
To set aside at least 10% of your income for something that can have potentially exponential value over time with your savings and help reach your financial goals as you so desire.
But saving in the bank for the long term is not really a wise move.
What would be wiser is putting in your money in vehicles that make money move and work for you while you are at work yourself.
Sounds pretty awkward and confusing, right? (money working for me?) It only means you need more financial education. That's why this blog is put up in the first place.
If it sounds familiar, congratulations. Are you taking action steps on this financial opportunity? I hope so.
So after I pay myself first with this Financial Liberation component, what now?
There a variety of investment vehicles which you can ride on to grow your money. You can go into stocks, real estate, mutual funds, insurance, etc. The choice is all yours. Where to go now is all up to you, and how you are going to decide on that will be tackled on in future posts.
So for the meantime, now that we have basically concluded the parts of the money management system known as "pay yourself first", you can also actually set aside a little portion of your income for your other needs. You can set up accounts to buy books and attend seminars and workshops that are important to you in personal growth and in personal finance. You can also set aside a portion for the fulfillment of your dreams - maybe a car, a house, or anything that seems important and valuable to you and your family.
It doesn't necessarily mean you have to follow my strategy. Because the whole time, this is how I've been managing my money over the past year and it has worked miracles and blessings to me like no other. It's all up to you.
Pay yourself first today. It's not too late to become financially responsible.
To be financially free. To have more money in order to make ends meet and live comfortably today and tomorrow.
To set aside at least 10% of your income for something that can have potentially exponential value over time with your savings and help reach your financial goals as you so desire.
But saving in the bank for the long term is not really a wise move.
What would be wiser is putting in your money in vehicles that make money move and work for you while you are at work yourself.
Sounds pretty awkward and confusing, right? (money working for me?) It only means you need more financial education. That's why this blog is put up in the first place.
If it sounds familiar, congratulations. Are you taking action steps on this financial opportunity? I hope so.
So after I pay myself first with this Financial Liberation component, what now?
There a variety of investment vehicles which you can ride on to grow your money. You can go into stocks, real estate, mutual funds, insurance, etc. The choice is all yours. Where to go now is all up to you, and how you are going to decide on that will be tackled on in future posts.
So for the meantime, now that we have basically concluded the parts of the money management system known as "pay yourself first", you can also actually set aside a little portion of your income for your other needs. You can set up accounts to buy books and attend seminars and workshops that are important to you in personal growth and in personal finance. You can also set aside a portion for the fulfillment of your dreams - maybe a car, a house, or anything that seems important and valuable to you and your family.
It doesn't necessarily mean you have to follow my strategy. Because the whole time, this is how I've been managing my money over the past year and it has worked miracles and blessings to me like no other. It's all up to you.
Pay yourself first today. It's not too late to become financially responsible.
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