Thursday, February 25, 2016

How to manage your money

Pay Yourself First


Income less Expenses = Savings

This is how most of people manage their finances and most of the time their savings equals zer0.
Believe it or not with just one change on this equation, the result is phenomenal!

Income less Savings = Expenses

This is the secret to start building wealth. PAY YOURSELF FIRST!
This is more of a mindset that the remaining money after savings will enough for your expenses. This will force you to make fit the remaining money to your expenses. If you need practical tips on how you can save money through your expenses, check out my previous blog post about it here. Practical TIPS on how to save money.

To reinforce this kind of money management you need to make it a habit. Start with a comfortable, convenient, affordable amount of money you want to save. Do it regularly and increase it as you feel right. The important thing is you have to do it NOW and do it regularly. Once it become a habit it will be automatic for you to Pay yourself first and save.

What you do with your money is another thing and it will be our next topic. For now get started in your savings, do it now, do it regularly, increase as you feel right.

Share your thoughts on this and let me know how have you done with savings and paying yourself first.

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