Pay Yourself 10% First!

Many people are in the condition of broke. They may earn a lot but they spend a lot also. Some are even worse; they earn a little but spend a lot! I hope you are not one of those people.
There are many books out there that teach people how to get out of that special situation, and most of the advices start with this.

Pay Yourself 10% of your salary ( after deduction of tax, SOCSO etc), FIRST.

Why pay first? While most people, pay themselves last after a month of spending. They would say I have loans to pay, kids to take care, I could only save after all expenses is cleared. This is one of the ways, but ask yourself, how many of them have money to save after they pay all the expenses? A lot? A little? Or None at all? A much more secure way to save your money is by paying yourself first and then budget your spending afterwards. By doing it like that, you would be sure to save some up every month.

Why 10%? Because taking 10% off your budget would actually not affect your spending too much. Say normally you have 100 dollar to spend but now you only have 90 dollar. Not much difference right? You could opt for more percentage but make sure it won’t affect your life too much. Remember, Pay Yourself 10% First!

When can you use the money? NEVER! The money can only be used for investment. The 10% is meant for you to create a passive income. That is to make your money work for you to earn more money.

If you are thinking that your current financial standing doesn’t allow you to do so. Let me share a story from the book “Secrets of the Millionaire Mind”.

Emma who was about to claim bankruptcy was at a seminar when she heard about Paying Yourself 10% First idea. Remember? She was broke, about to claim bankruptcy. So, she didn’t have much to start. She started with the only money she had, 1 dollar. She saved 10 cents up and budget before spending her remaining 90 cents. She knew 1 dollar is not enough to get her financial free, so she commits to double up the money every month. After twelve months, she had 2048 dollar to save and she was also out of bankruptcy.

I know you have more than Emma. That’s why I know you can more successful than her. So remember, start today and

Pay Yourself 10% FIRST Every Month.


By,
Yong Yeong Chow
Public Mutual Unit Trust Consultant (Certified Financial Planner to be)
MSN : yyc83@hotmail.com
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