05/01/2009
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During the first two years of my career, I did not have any savings at all. I spent every cent I made. While I was never in debt, I remember it wasn’t a very good feeling. Of course I dreamt about getting rich, I dreamt about someone sharing his or her wealth secret with me. Of course, no one did.
One Sunday morning, I stumbled across an article that spoke about a particular wealth secret. This money saving method has been around for ages I was told. But for me at that time, it was like discovering Bill Gates’ wealth secret.
It’s called “Pay Yourself First”. Some of you would have heard about this already.
If you have heard about this and have never put it into action. I urge you to read this again and put it into action. I did and it worked for me.
The method is very simple. It basically says, each time we get paid we end up paying other people first. We pay the utility bills, car loans, housing loans, etc. So, whatever that’s left after all the payments we keep for ourselves. If I have to take a guess, it is hardly enough to last the month. After all, we like to eat well, dress well and live the good life!
Now, something is not very right about this. It would seem we work for others instead of ourselves. This method says, each month take out a certain amount of money and deposit it in another account first. This is before you settle the other bills. Hence the name -- pay yourself first. And importantly, do not withdraw from that account.
1. Start Small. No Matter How Small.
The important thing is to start somewhere. The wonderful part about this wealth secret is that – inevitably you will find that even after keeping some for yourself FIRST, you will still have enough to pay the bills!
I have personally done this and the money I saved has come in handy more than once when that extra cash is needed.
There are only two steps to your wealth secret:
-- i. Make it a point to open another account (or use a dormant one that you have).
-- ii. If you are not confident about your discipline, cut the auto teller machine (ATM) card. It makes it less convenient to withdraw. Use a standing instruction to transfer the money from the account where your pay is deposited to your wealth secret account.
2. That’s It. It’s a No Brainer.
The challenge is to start. Once you start you will feel good for yourself and you would continue month after month.
Long Yun Siang or Long, as he is popularly known runs http://career-success-for-newbies.com with his wife Dorena as their way of paying it forward. Their Web site -– based on their real life experience -- provides tips, tools, and advice for newbies pursuing career success.
© 2009 Long Yun Siang
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