Monday, June 12, 2006
So You Want to Be Rich (Part Five)
We’ve been talking about some guiding principles that will make you rich. Of course, we’re covering them quickly, but I’m trying to open your mind to a different way of thinking. As you read this, bear in mind that we live in a world where 95% of the people out there don’t do what I’ve told you. They end up working hard with nothing to show for it at the end of their lives. You don’t want that do you? You want to end up rich right?
Now, there is one more principle that I want to cover in this series. Without following this you simply won’t ever get rich. As I said before, you might make a lot of money, but you won’t get rich.
Let me ask you, why do you want to get rich? Really think about it. Could it be to get some financial pressure off your back? Would you just like an extra $100,000 in a bank account? I’ll bet you would.
You see most people spend everything they make. No matter how much money they make, they spend it. That’s why they want to make more money. They think it will solve their problem. It won’t. I know, you’re thinking, “Come on Bryan, If I’m making an extra $5,000 a month I won’t have any money problems”. This will be true for a little while. But, your spending habits will catch with you. A downturn in your business or job and all the sudden you have money problems again.
The good news is, by using this one principle you’ll certainly be rich. Here it is:
“Save 10 percent of what you earn”
Engrain this into your thinking. Above all else do this. Start today. Open a free account with http://www.ingdirect.com/. It’s easy to do and they offer the best savings rates of any bank I’ve seen. Set it up to take 10% out of your pay automatically every week. Here’s why:
Why do you think the government takes taxes out of your paycheck? Why don’t they trust you to just pay them at the end of the year? What do they know that you don’t know?
I’ll tell you what they know: They know you’ll spend the money! They want to get paid before you spend it on a new big-screen TV.
Do yourself a favor. Pay yourself first. You’re more important than anyone else. You’re more important than Visa, Master Card, or a new computer. These things will take care of themselves. You’ll always find a way to pay them.
I can hear you now, “But Bryan I can’t save 10% I don’t even have enough money now”. You know something, everyone feels that way. But, I’ll give you a tip: You only have to get by for 4 weeks. After that you’ll never miss the money. I know you can’t believe this, but it’s true. That’s the magic of saving and paying yourself first.
Here’s another Tip: If you don’t build the habit now, it will be harder to build when you do start making more money. Do you really think it’s easier to save $1,000 a month out of $10,000? It’s not. It’s much easier to save $50 out of $500.
When you do this, the money will build up. Even just by working a regular job you’ll end up richer and richer as time passes. In fact anyone who simply did this, at any income level, would amass a fortune. If you think about it, it really seems silly that something so simple; something that takes 5 minutes to set up will make you rich. Nobody does it because they can let go of that 10%.
Start saving 10% of what you earn today. If you don’t do this, you’ll never get rich! When you do it, you’ll wonder how you lived your life any other way.
Go back and read Part Four
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