Hey.
Pay yourself first. Sitting money gets spent. Unless there is a deliberate plan, our expenses will always rise to the level of our income.
The key is to design a system for the money that hits our bank accounts before we ever have any income. With a system designed already, there is no question as to where our money goes when it hits.
Spend it on yourself and your investments before it makes its way down to lululemon. Pay yourself before it even goes to the mortgage, the utilities, and the credit card. Right now I have a credit card balance due next Friday along with a car payment that I can’t pay because I invested the majority of all my paychecks this month. I literally have to increase my sales as a door to door salesman this week otherwise I won’t be able to pay them. I've saved and made more money this past month from sales commissions than I’ve ever made in my life and I’m as broke as I’ve ever been. It feels good though because it’s a choice.
Have specific assets lined up to purchase as each paycheck comes in. If you don’t have anything lined up, then put that same amount in savings accounts that are off limits. Never touch this money unless it is being used to buy a cash-flowing asset.
Money that sits gets spent. Get in the habit of not having cash loitering around in easy to access accounts. Don’t pay your debts with money that should be used for asset acquisition. Pay your debts with an increase of production at work or an added income stream. Use the stress and pressure of it to increase your income.
Don’t say “I can’t afford to cover my basic expenses this month and invest”, say “I’m investing no matter what. How can I cover my expenses too?” Don’t kill yourself over it if you don’t want to, but at least get in the habit of putting money aside for assets right when you get paid.
Audit your finances and diagnose what happens when any amount of money hits your account. Are you simply living and saving off the scraps after the banks, credit cards, grocery stores, and insurance agencies have had their feast? Or are you deliberately living broke on purpose as you hoard up your wealth to purchase large cash flowing assets?
My current system:
10% to tithing
15% to cash flowing assets (option trading, real estate, and cryptos)
25% to student debt
Everything else hits my budget. Leftover budget money pays off debt. Once I’m debt free, then all that money will go to assets.
All income from assets goes to my budget. I slowly phase out my earned income to go exclusively to cash flowing assets.
So, let's stay broke and build that monthly cash flow to cover all of our expenses.
Tanner
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