If you can't lick this you lose.....
Have you ever heard of Parkinson's Law?
This law states that a person's expenses rise to meet his/her income. In many instances, a person's expenses rise to EXCEED his/her income.
If one of your goals is to become financially free, then you MUST overcome Parkinson's Law.
The savings rate in the United States is at an all time low. What does this mean? Simply, that the majority of people in the U.S. spend everything they make. In fact, the majority spend more than they make.
On the road to financial freedom, you must understand that regardless how much you earn, what's important is how much you have left after your expenses. If you make $2,000 a month after taxes and can live on $1,800, you have an infinitely greater chance to become financially free than the person who earns $4,000 a month after taxes and needs all $4,000 or more a month to live.
The concept of paying yourself first needs to become a regular habit. Take 10% of your net take home and pay yourself first. Figure out what you have to do to live on the remaining 90%.
If you cannot discipline yourself to pay yourself first, you will always run out of money at the end of each month. You are virtually guaranteed to lose at the money game.
At the Millionaire Mind Intensive program taught by Harv Eker and Peak Potentials Training, a part of the money management program is to set aside 10% of your take home income for your "financial freedom" account. This 10% is to be set aside for you to grow your "Golden Goose", which over time will begin to deposit "Golden Eggs".
You will never ever spend this fund. EVER! As your Golden Goose grows bigger and bigger, your Golden Eggs also grow larger, and eventually, if you've done the proper planning and stategies, you will have enough passive income that you will be financially free.
There isn't anything difficult or magical about this equation. It is guaranteed to work with mathematical certainty if you do certain things the right way with discipline and consistency over a period of time.
If you aren't already setting aside funds every month for your financial freedom account, start immediately. Attempt to put in at least 10% of your take home pay. If you cannot afford 10%, start with as little as 2 or 3 %, but START! Developing the habit of setting aside funds for savings and investments is critical to your financial success.
On the other hand, if you are unable to defeat Parkingson's Law, and always spend whatever you earn, you've lost, and nothing I or anyone else can tell you will change that. You will never win the money game.
Play to win. And keep checking back here for more great ideas on how to win the money game.
Namaste.
Jeff
This law states that a person's expenses rise to meet his/her income. In many instances, a person's expenses rise to EXCEED his/her income.
If one of your goals is to become financially free, then you MUST overcome Parkinson's Law.
The savings rate in the United States is at an all time low. What does this mean? Simply, that the majority of people in the U.S. spend everything they make. In fact, the majority spend more than they make.
On the road to financial freedom, you must understand that regardless how much you earn, what's important is how much you have left after your expenses. If you make $2,000 a month after taxes and can live on $1,800, you have an infinitely greater chance to become financially free than the person who earns $4,000 a month after taxes and needs all $4,000 or more a month to live.
The concept of paying yourself first needs to become a regular habit. Take 10% of your net take home and pay yourself first. Figure out what you have to do to live on the remaining 90%.
If you cannot discipline yourself to pay yourself first, you will always run out of money at the end of each month. You are virtually guaranteed to lose at the money game.
At the Millionaire Mind Intensive program taught by Harv Eker and Peak Potentials Training, a part of the money management program is to set aside 10% of your take home income for your "financial freedom" account. This 10% is to be set aside for you to grow your "Golden Goose", which over time will begin to deposit "Golden Eggs".
You will never ever spend this fund. EVER! As your Golden Goose grows bigger and bigger, your Golden Eggs also grow larger, and eventually, if you've done the proper planning and stategies, you will have enough passive income that you will be financially free.
There isn't anything difficult or magical about this equation. It is guaranteed to work with mathematical certainty if you do certain things the right way with discipline and consistency over a period of time.
If you aren't already setting aside funds every month for your financial freedom account, start immediately. Attempt to put in at least 10% of your take home pay. If you cannot afford 10%, start with as little as 2 or 3 %, but START! Developing the habit of setting aside funds for savings and investments is critical to your financial success.
On the other hand, if you are unable to defeat Parkingson's Law, and always spend whatever you earn, you've lost, and nothing I or anyone else can tell you will change that. You will never win the money game.
Play to win. And keep checking back here for more great ideas on how to win the money game.
Namaste.
Jeff
posted by Jeff Fagin at 11:19 PM
3 Comments:
Jeff,
I've experienced this Parkinson's Law before. Every dime I made, I SPENT, or my money just seemed to evaporate in to thin air.
Jeff
It is amazing how much money goes out as income grows.
Larry E.
I agree you must save.
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