How Much Money You Make Has Nothing to Do With How Much You Keep!
Practicing good money management habits is something you must develop day by day. If you have problems spending too much money or shopping out of control, this is something you can correct. Do not beat yourself up or worry too much about the past. As you start to understand some of the basic concepts when it comes to managing money, you’ll start to see day by day that you can control where you will go in your life.
First thing you must realize is that the amount of money you make has nothing to do with having good financial habits and avoiding financial mistakes. You can make $20,000 a year and make the same financial mistakes as someone who makes $1 million per year. The problem is the same, the details just change.
A person who makes $20,000 per year will probably live in a small and modest home. It will probably drive a used car that is six or seven years old. They will have to budget their money and buy groceries accordingly to what they can afford.
A person who makes $1 million a year probably lives in a very large house. They probably drive $250,000 car and do not worry too much about spending money on groceries.
The details just change, but managing money and practicing good money management habits are the same. If you make a lot of money or a little bit of money, you must learn how to manage and protect this money. Counting on your next paycheck is a losing strategy that will only get you in trouble. One day you will become older and must realize that you will not be able to work for the same paycheck for the rest of your life.
Starting today with learning how to correctly spend and save your money is essential. Do not worry about how much money you have, as this does not matter. Learn how to start saving a minimum of 10% of your income each paycheck you receive.
This one rule, saving 10% of your income, will allow you to show yourself that you can do this. After one year’s time, you will see that you have intentionally set money aside. This will awaken a part of your brain that has never been awoken before. A light bulb will go off and you want to start saving more money. After you start saving money, you’ll want to learn how to invest that money and make it grow for you. You must start small and start now.