MindsofWealth.com

In the previous article, “Budget Your Way to Billions,” Adam talks about paying yourself first. How do you do this you ask? It’s actually quite simple. First you should make this habit AUTOMATIC. Here is what I mean by this.

If you have a 401K or a savings account there is usually an option for the money to come right out of your checking account or direct deposit. This will automate the process so that the money you save is out of your check before you even get it. When I worked for a well known cellular company this is what I did. I even had the ability to link my direct deposit up so that a certain amount of money went directly into my savings account.

A few tips to consider when doing this. Start out saving AT LEAST 10% of everything you receive. If you get a monetary gift for your birthday, take 10% and put it away. If it’s pay day, take 10% and put it away. You get the picture. This may seem like a fairly small amount but in all actuality it can turn into a lot over a year.

A personal goal I have set for myself this year is to save exactly 10% of everything that I earn each month. I put this money into my ING DIRECT saving account. This account works great because it links up with your personal checking account and allows for you to transfer money with the click of a mouse. Did I mention that they pay you close to 5% every month on your savings? Check with your personal banks savings account and see if it’s even over 1%. You will be shocked, I was.

After you do this, ignore it. Forget that money is even there. The faster you learn how to do this the better you are. Mark on your calendar when a year has passed and check to see what you have. This way you will have a sense of shock when you see how much you have saved. The next thing you can do is find an asset to invest in. Check the article we have on assets so that you are familiar with what to look for.

From this point on you should be miles ahead of most people. Did you know that 21% of people out there believe that the best way to amass money is to win the lottery? If you fall under this category and you are someone who likes percentages listen to this. “You have a better chance of getting struck by lightening than hitting the lottery.” Yes, this is true. If you think the lottery is bound to come up in your favor then excellent, go for it. But if you have been playing for years and realize that there might be another way, do what we have done and save.

Saving is not the only thing you can do with your money but it is the first step. After you have saved for a year you then have the fun of finding those assets we have talked about.

So start by making your savings automatic, if your banking institution does not allow it, find another bank or deposit the money yourself. Either way, the sooner you are able to save 10% the faster your path to wealth will be. Save that money and good luck.

M.B.

Continue to Part III Budget Your Way To Billions-The Technique

This entry was posted on Tuesday, July 31st, 2007 at 6:40 pm and is filed under Money Management, Investing, Introduction. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.