The Strategy for Paying yourself First
“In the family, as in the state, the best sources of
wealth is the economy”.
-Cicero
Here are the main
points to note about saving for life.
1. Begin by determining the kind of investment, career or purpose into which you intend to employ the savings.
2. The investment must be the kind that will grow and multiply your saving and mature to yield one or more perennial streams of income.
3. You will set a goal in that direction. The goal shall be written and time-bound.
4. You will determine how long it will take to accumulate the amount of m0oney needed as the startup capital, the sum that will permit you to start small.
5.
As
you begin your saving program, you will also commence the process of gathering
the knowledge, skill, and experience that will be needed to excel in the career
or investment you have identified.
6. You will stick, with steel tenacity, to your savings project as well as to the art and skill of starting, running, and excelling in the trade you have chosen.
7. If you run a business, you must see the company as a separate entity. It shall have its own saving scheme in place. In the corporate world, this is called the “sinking fund.” This money accumulates over a long time to permit the business to profit from expansion or take advantage of bigger opportunities. It is said that a company that does not have a sinking fund in place would invariably sink. The company must also contribute to charity the same way as we have described for the individual.
8.
Your
mortgage, if you have one, is a component of your ‘rainy day’ desires. As you
redeem the payment, it is vital that you nurse a secret ‘saving for life.’ You
do not live in order to pay the mortgage; the mortgage is there only to provide
a place to live in. Everyone alive must find a purpose. This is your
profession.
“Your profession is not what brings home your pay
check.
Your profession is what you were put on earth to do,
Spiritual in calling.”
-Vincent Van Gogh
9. If you catch yourself neck-deep in debt. Running away will not do. Take the following six action steps all at the same time.
I.
Write
the entire amount on paper and schedule repayment patterns, and keep to the
plan.
II.
Reduce
your spending, and block all possible areas of waste.
III.
Stop
further borrowing; throw away the credit card.
IV.
Begin
too safe for life; keep a Clear plan.
V.
Contribute
to charity.
VI. Find ways to increase your Income...
10.
This
much you must remember: above all, save for life, forever living should be
forever saving. You must bear in mind that those who save derive great hopes;
and those who have hopes enjoy happiness, strength, serenity, and longevity.
This Article is taken From Pay yourself First.
Written by Arshad. A
