Saving 10%
Saving money is essential to building financial security. I must admit that I haevn’t been a great saver since I moved out of my parents house many years ago. The extra money that had been stockpiling in my account now pays for things like the mortgage, utilities and sometimes scary cell phone bill.
My ultimate goal is to live on 50% of my income. I’ve taken this from the T. Harv Eker’s Millionaire Mind money management plan. Where the other 50% is broken down into:
- Financial Freedom Account (10%) – used only for investing and creating passive income streams. Never spent, only invested!
- Play Account (10%) – must be spent each month on something that makes me feel good!
- Education Account (10%) – set aside for education: school, courses or seminars.
- Long-term Savings for Spending Account (10%) – accumulates so big purchases can be paid in full, like trips, cars, etc.
- Giving (10%) – given away to charities that I believe in.
By setting this goal I know it will be acheived. I’ve already taken the first step today by moving 10% of the amount I deposited into a savings account. I will do this each and every time money comes in. Once it becomes easy the amount will increase until the 50% goal is reached.