Today is my payday. Every first payday of the month I will get my pay check bank in to my account. What is so important with payday compare to other day, you may ask? It is because I can see my dream to becoming a millionaire closer. Even though I am on my own but the company will pay me salary every month. I will then apply my personal money management on my money. That’s very important.
What do I do with my pay check? On my first personal money management tip I will transfer 10% of my pay check money to my Pay-Me-First account which is a saving account in a different bank. The money will be credited and I can not withdraw the money no matter what happen. I will consider it gone in my mind.
Then I will transfer another 10% of my pay check money to my saving account for emergency, year end car insurance or road tax and so on. That is my emergency account and I can withdraw if I want just for emergency fund. The balance of my money I will use to pay others like mortgage, car installment, and my own expenses for the whole month. Pretty cool right. I have been practicing this personal money management for many years. It’s work.
If I do have extra money at the end of the month and I will also transfer to Pay-Me-First account. After 6 months I will then invest in stock or bond for a better yield.
You must have this first personal money management tip on your personal finance regardless of whether you are working for people or working on your own. This is one step to becoming a millionaire.
To your millionaire success.