“Regardless of the size of your salary you probably earn enough to get rich. Nothing will help you achieve wealth until you pay yourself first” David Bach
The man that gave me a 10,000 scholarship to go to college was a janitor. He had been the janitor of the school for many years and no matter how much he made he said he would save a small amount every time he was paid. He kept saving and eventually bought some properties and is now able to give back and help students go to college. I’m so grateful for this man. He has taught me that no matter what job you have you’re able to become financially free and not only be able to support your family and live a life you deserve, but you’re also able to give back and help others. His wife even did the same thing. She said back then she only made about $45.00 a week, but it didn’t matter she had to save $5.00.
The first person you should pay each month is yourself. After you’ve paid your student loans, rent, car payments, and bought groceries, you probably won’t have much money left to save. Set aside a portion of your money to save and invest for yourself. To make it even easier for you make all your bills automatic!
“Why do so many people believe that personal finance is only about willpower? The idea goes like this: ‘If I just try harder, I’ll start saving more, pay off my debt, stop spending all that money, keep a budget, learn about investing, start investing, re-balance ever year…’ Unlikely. In fact, go ask your friends if they’re taking full advantage of their employer’s 401(k) match. The vast majority of people are not — even though it’s literally free money. Their answer? ‘Yeah…I really should do that…’ It’s not about willpower. More than anything else, the psychology of automation is critical to successfully getting control of your finances.” Tim Ferris
In the video above I explain Ramit Sethi’s “Bulletproof personal finance system”. “By setting up a bulletproof personal finance system, you can start to dominate your finances by having your system passively do the right thing for you. It will help you automatically manage your money, guilt-free, for years to come. Bills, payments, and even investments will be automated, leaving you to focus on the things that really matter. And since the system is so flexible, you can tweak it to your specific situation.” Ramit Sethi
This system makes perfect sense. If you make all your bills automatic you won’t have to worry if you will have enough money to save or to invest and then you will be forced to live with what’s left instead of paying everyone else and then not having enough to pay yourself. Hope this advice was helpful. If you know anyone else who will benefit from making their bills automatic please share this post with them. And for more money tips be sure to check out Ramit Sethi’s website http://www.iwillteachyoutoberich.com. As always be wise, stay humble, and build.
The automatic millionaire book by David Bach