Most people’s spending trend is:
Get income -> pay expenses -> spend little on leisure/entertainment -> save the remaining
If you have been struggling with your finances and you are doing this, you should expect to still struggle till the end of your days. IF YOU WANT A DIFFERENT RESULT, DO SOMETHING DIFFERENT. Another salary increase will not solve your problem. I can guarantee you that once you increase your salary, your expenses will go up as well – because “you just had to look like you have money”, right? Nope! Stop buying stuff you can’t afford to please people you don’t even like.
Here is your how money should flow:
Get income -> PAY YOURSELF FIRST -> pay expenses -> spend little on leisure/entertainment -> save the remaining.
What do you mean by paying yourself first, you say?
It means I want you to protect yourself for the future. I want you to start building your wealth until the time comes that the only reason you are working is because it brings you great joy to do so. Put it somewhere you know it is safe and impossible to be touched or spent by you. I strongly suggest mutual funds but don’t take my word for it, do your own research as well.
I know it is difficult for most – especially for those who are barely making enough every month, but if you follow this steps, and think hard about it, I guarantee you will find money in places you usually don’t see. Maybe it’s time to sell that PS4. Do you really need another suit, watch, latest gadget and more ‘bling’? Do you really need to scroll through Facebook and Instagram that much? A book would be a better time investment. Be more aware of where you put your time and money. Maybe it’s time to let go of that unnecessary stuff and make space for what is truly important. Get creative. If you really put your mind into it, you can make it happen. Stop telling yourself these excuses that would be of no value to you. Act now!
Quick tip: The best investment you can make is in yourself. Invest in coaches, courses, build more skill sets so that you would be valuable to your clients/employer and be able to produce more value for the world. The money will come after – but that is another topic for another day.