Habit 2: Spending Less Than You Earn
Habit 3: Paying Yourself First
Just like your personal health, making positive decisions for your money when faced with the temptations of everyday life comes down to two things — willpower and creating systems to make up for the days when your willpower just doesn’t exist. One such system is paying yourself first, meaning you deposit money into your savings account (or investment accounts) before anything else. It essentially makes saving an expense just like your electric bill or mortgage payment – before it can be haphazardly allocated to random and unnecessary purchases. Once this habit is established, you’ll adapt to your new spending limit, and your savings will steadily increase without any additional sweat or hard work on your part. At Real Estate Concierges, we call this our 20/30/50 financial plan where the 20 is paying yourself 20% of your take home pay first, before any other bills are paid. Invest in yourself first!