Motivational Power Quote
The Habit of Paying Yourself First
“The philosophy of the rich versus the poor is this.
The rich invest their money and spend what is left,
the poor spends their money and invest what is left.”
Jim Rohn, Author, Self – Help Expert
As I see it . . . . . . .
The habit of paying yourself first
It’s not in the amount of the money you make it’s a matter of the philosophy that you live your life by.
With children we teach them to save their pennies, and as time goes by they create a habit of saving money.
Some people can save only dollars, while others will save hundreds and some will be able to saves thousands of dollars. It’s not the amount that important, it’s the habit of paying yourself first and investing the money for you and your family’s future.
I would like to share a story with you about a real estate professional that I know very well.
Since she started in real estate she had goals and was committed to invest her money. In her early years she worked at a survival level but even at that level she had a goal. She explained to me that with her financial goals she budgeted 5% of every closing would be to invested her investment account.
She when on to explain that with her goals that once she get past her break even number she committed 10% of the income to her invest account.
As her career stabilized she continued to use the ladder approach to investing her money.
Today she invests 10% of her monthly breakeven income. Once she get past her breakeven income she invests 25% of her income until it plateaus at a fix level and from that point she invests 100% of her income.
What start out by investing 5% of her incomes has turned into financial security. It’s not how much you invest that matters it’s the habit of investing that’s important.
The habit of paying yourself first is a grassroots investment strategy to pay yourself first from every commission check you receive.
©2012 Lou Ludwig, Sales and Management Consultant, Success Coach, Speaker, Trainer and Author