Personal Finance Guide ~ 1st Pillar :: PAY YOURSELF FIRST!!!

This is the most fundamental and basic LAW, UNIVERSAL TRUTH that will definitely lead us to greater wealth abundance. Regardless of our financial situation, set aside and save a fix amount every time we get our salary. If you are not already comfortable with the idea of saving, start with 1% then, we will not feel it at all. The important thing is to START saving. Once we are comfortable with 1%, increase it to 2% or 3%. Feel the satisfaction as we watch our wealth grows. And adjust the saving percentage to reach at least 10%. Remember: The more you set aside as saving, the faster you will reach greater personal wealth abundance.

This is important, as most of the time, once we get our pay, we tend to start paying off our bills. May it be credit card bills, utilities bill, cable tv bill, groceries and what not. At the end of the day, you realized that there is nothing left. To accumulate wealth, we have to get started. Decide and belief that you can live with the rest of the 99% of your salary. Everyone can do that! Keeping in mind that the final goal is to pay ourselves at least 10% of what we earn.

For your contrast:

Mentality that leads you nowhere -> INCOME – EXPENDITURE = SAVINGS, most often SAVINGS will be zero.
Mentality to lead you to your personal abundance -> INCOME – SAVINGS = EXPENDITURE

PAY YOURSELF FIRST!

Personal Finance Guide ~ 6 Pillars to Build Your Personal Wealth

There are 6 key supports to building up our personal wealth. Follow these 6 steps to lead us to our personal wealth abundance. These 6 key concepts will be presented in greater details in subsequent post. =D

1. PAY Yourself FIRST!

2. Plan and PAY OFF Your Debts

3. Accumulate EMERGENCY Reserved

4. INVEST Your Excess

5. PROTECT Your Wealth

6. GIVE!

These are key ideas distilled from various personal finance book that i have read. One of the best personal finance book that i have came across is The Richest Man in Babylon It is a concise and easy to read book to give you a good understanding of how to start accumulation of your personal wealth.