Money Management Habits (I)

There are several money management habits out there taught by many highly successful people (Robert Kiyosaki's Rich Dad Poor Dad, Frank & Dr Muriel Newman's The Seven Ways to Wealth, Adam Khoo's Secrets of the Self Made Millionaires, T. Harv Eker's Secrets of the Millionaire Mind) but most of them have 1 thing in common, that is - PAY YOURSELF FIRST.

The concept is simple, for most financially-challenged people, the cashflow management is as follows:

When the pay cheque comes in, they spend first and whatever is left, they save. The pitfall is most of the time, there isn't anything left at the end of the month to save, let alone to invest. For this type of cashflow management, there is usually a little self control for spending and they tend to overspend or buy things on impulse or things which they did not plan to buy. Why is that so? It's because our expenses will always rise to the level of our income.

As for the RICH, the cashflow management is:

When pay cheque comes in, a fixed amount (10% is usually the recommended value though the higher the better) will be channelled to another account (which in T. Harv Eker's programme, its called Financial Freedom Account or FFA in short - we shall discuss T. Harv Eker's method's another time) and then spend whatever is left. Using this practise, the tendency to overspend will be reduced as the will not be that much "free" money lying around. Furthermore, the money saved will then be used to invest for higher returns.

We have had this concept for a long time long long ago but we didn't put into practise until recently when we attend the Millionaire Mind Intensive (MMI) course by T. Harv Eker that we finally decided to start to practise this habit. It does takes a lot of control and discipline but its a matter of habit which we are forcing ourselves to do so. Three months have passed since we started and amazingly we were able to control our spending and forced ourselves to save some money.

Learn more about money management habits, go to this link :
http://tinyurl.com/3cnl8w

Quote of the day:

"You are the root of your own success"