Topic: paying yourself first

Buying Gold Coins; Budgeting for Investing

August 15th, 2009

Ok time to get off your butt and step out of whatever
comfort zone you thought you had. Its now or never. In previous posts we talked
about why you should be buying gold coins. Now we are going to discuss how to actually
do it. 

Step 1   Determine how much you can
afford to invest. Take  a look at your
finances and see how much you can set aside for investing. A good rule of thumb
is the 70/30 rule. So break it down this way. 

10% for saving

10% for giving

10% for investing

70% for everything else

Ouch! that sounds like a lot doesn’t it. If you are like
most people, you don’t have the 30%. But don’t give up yet. This is an ideal,
not a hard and fast rule. The point to start setting aside an amount every
month for saving, giving and investing. This is what we call paying yourself
first.

This is not a new concept.  
Most successful investors operate on similar ratios. I first discovered
the concept in Robert Kiyosaki’s book “ The Cashflow Quadrant” Robert so believes
in this concept that he instructed his accountant to deduct the 30% at the
beginning of the month, regardless of what bills needed to be paid. He would
use that pressure of the looming bill to force him to find ways to earn the
money. The accountant was very reluctant to do it, but Robert insisted. And
they were always able to meet their obligations.

Let me be very clear on this. I’m not advocating not paying
your bills, and neither does Robert. It is simply a matter of faith. You have
to believe that you can meet your goals, and you must be willing to pay the
price to make it happen. That’s the key. By paying yourself first, you are
taking action to create wealth.

Not everyone is at this level. I personally cannot do 30%
yet. But I am setting aside a percentage of my income every month for buying
gold coins.

In addition to the percentage that we are setting aside for
investing,  we  are also taking a percentage out of any
business income we have come in as well.

In conclusion, start taking action now. Set aside a fixed portion
of your income for the 3 pay yourself  first catagories. Even if you don’t enough to
buy gold coins yet, by setting aside this amount, you will be starting. I
cannot stress this enough. If you want to make a change in your life, you have
to do something different. You cannot do the same thing in the same way and
expect different results That’s insanity.

In the next post we will talk about finding a reputable
dealer

Yours in investing,

Michael Blaes

PS. Please share your thoughts by commenting below.

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Pay yourself First to Save Money

January 20th, 2010

Pay yourself first to save money means think about taking care of you before something can happen.

Keep yourself health is the first step to saving money and your payment to you. There are many ways to staying healthy and taking care of you.

Stay on a good diet by staying away from fast food. Eating a lot of fast food is expensive and you don’t get the nourishment from fast food that you get from eating the right foods. Fast foods are high in calories and cholesterol, which are both bad for the heart and could cause you to have a stroke.

Get a lot of exercise to keep you healthy and save money by being in good health. Exercise will help to relieve stress, keeps your blood circulation flowing more freely, help prevents strokes and exercise will help the mind and body to relax more. Exercise for you will save money by helping to keep the doctor away.

Take care and save by taking long walks on a daily basis. Walking relieves stress, depression, anxiety; helps prevent strokes and heart disease. Walking is cheap only costing you maybe an hour a day from your busy schedule. Pay yourself for the things you’ve neglected to do for you alone by exercising.

Save money by paying yourself first when you are less stress. Stress can cause a lot of health problems causing strokes, heart diseases and mental problems as well. Stress is the most common reason for illness. Chronic depression is a large result of stress. Relieve some of the stress by exercise and eating right in paying yourself first to same money.

Communicating with others, can help pay you fist by letting you forget and relieve some stress. You be taking time out to enjoy people around you letting you do something besides thinking what wasn’t done on that day, to do list. Communication can give you a chance to know and learn what is happening out there in the world that is surrounding you. You can learn new skills on how other people pay themselves to save money, by just listening to them talk.

Paying yourself first will save you a lot of stress, keep you healthier, boost up your communication skills, and it can give you the confidence you didn’t know you had or was capable of having.

When a person pays himself or herself, first they can save money by not having to make trips to the doctor, do and buy things they don’t really need or want. So taking care of you is the first and most effective way to save money.

Martin Lukac
http://www.articlesbase.com/finance-articles/pay-yourself-first-to-save-money-107104.html

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How you Can Pay yourself First

January 9th, 2010

It’s the beginning of 2007, the beginning of a new year. It is also a time when you start to make resolutions or goals for a brand new year. I am sure among them you might have some that are related to wealth creation or accumulation. (If not, you better start thinking about that now).

One of the easiest and powerful way to accumulate wealth is to follow the “Pay Yourself First” rule, which was one of the teachings Rich Dad taught in Robert Kiyosaki’s “Rich Dad, Poor Dad”.

What does “Paying Yourself First” mean and how you can follow it?

Basically, it means you simply set aside a certain amount of money each month that you will not touch (pay yourself), even before you pay your bills and expenses (pay others)!

Here’s a step by step guide which you can follow:

1. From the amount of money you make each month, you decide how many percent of your monthly salary or income you want to set aside. When you get your paycheck, the very first thing you do is to put this amount aside, hence the “pay yourself first”.

The percent to set aside differs from individual to individual depending on each comfortable level and wealth target. Most people recommend 10% to 15% of the monthly income to set aside, but I suspect that you might need to go up to 20% or even 30% if you want to reach your financial success.

2. Decide what you want to do with this amount which has been set aside. Many will simply put the amount into their saving accounts. However, the idea of paying yourself first is to use it for your wealth building. You should be looking into investing them instead of just saving them. Saving alone will not help you to reach your financial success. Let the money earn you more money by investing it. Consult with your financial planner or advisor to decide the kind of investment portfolio that suits you.

I would recommend that you setup what is known as an automatic withdraw from your bank account to your investment institution for your investments. This is when money is automatically taken out of your savings or checking account each month and put into your investment. Generally, you have to select a certain day each month for when the transaction will occur, and it will happen every month on that day, just like paying your bills. In this way, it does not rely on your ability to set aside a certain amount each month. It relies on the computers who automatically invest your money for you. It is also easy once you realize how you don’t miss the money.

3. Next, you pay off your bills.

4. Live on whatever is left over from your paycheck. It does not however imply that you need to use up every single cents of what is left. If you have surplus, then good for you. If you have a substantial surplus, then go back and re-adjust your investment amount. Increase you monthly set-aside amount for investment, and let it generate more money for you.

5. And finally, NO CREDIT CARD DEBT! Don’t spend on credit. Also be very careful with home equity loans and car loans. It’s easy to get into trouble with both.

If you are disciplined, you can pay yourself first without running into a credit rut.

First, keep your personal expense low. Don’t go out and spend your money on “ego” toys like a new car, a new outfit or a long vacation. Not until the habit of paying yourself first has built up enough assests for you to afford them.

Second, when you come up short, don’t dip into your investment to pay off your creditors. Robert Kiyosaki believes that if you are under pressure from creditors, the pressure will actually inspire you to come up with new ways of making money. Look for other ways to tide over.

As you start to build assets, you will see that the income from your assets will allow you to pay for your personal expenses and expanded your means for you to live the livestyle you want.

Paying Yourself First is a simple yet powerful concept. It is so powerful that it could be apply to other area besides money. You can apply these same principle to time. Pay Yourself First if you are a busy working mother. You need time to take care of yourself so that you can take care of your family!

Bernard Ng
http://www.articlesbase.com/advice-articles/how-you-can-pay-yourself-first-97370.html

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