Buying Gold Coins; Budgeting for Investing

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.