![]() ![]() When getting started, the habit of how you save is more important than what you save. Whatever is leftover is spent.ĭon’t get hung up if you can’t save 20%. They automate their savings by setting up standing orders at the start of each month. Smart spenders save first and spend whatever is leftover. By the end of the month, they’re lucky if they have anything leftover, nevermind 20%. Most people spend first and save whatever is leftover. You might be looking at this and thinking “there’s no way I can save 20% of my income each month”. This isn’t an exact science, but 20% is considered to be the approximate amount you need to save to achieve financial success. ![]() The only number that’s important here is how much you save. ….On the right-hand side write down how much your fixed bills are, how much you save and how much you spend. ….On the left-hand side, write down how much money you make each month (don’t forget to take off tax). To get started, grab a sheet of A4 paper and divide it into two. I’ve created the simplest (and only) budgeting system you will ever need. What matters is how much is leftover and what you do with it. It doesn’t matter how much you earn or how much you spend. I am of course talking about budgeting – the intentional act of telling your money where to go rather than wondering where it went. It’s about understanding what’s coming in (income) and what’s going out (expenses). Knowing your numbers is the first step to taking control of your finances. These three simple steps provide a proven process for taking control of your finances and achieving financial success. When we really break it down, financial success requires just three things: ![]() Knowing Your Numbers (otherwise known as budgeting), is part 1 of a 3 part series on how to achieve financial success.įor many, finances can be complicated. ![]()
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