Many families find it difficult to keep their spending under control. Have you ever asked yourself, “Where did our money go? We are making more than before, but things seem as stretched as they have ever been!” This is a common problem. People make higher income over time but don’t know where it all goes.
The step that can change your finances forever!
So what is the trick? Get it out of your hands before you have a chance to spend it! Most people get their paychecks automatically deposited into their checking account. Now… go a step further! Get on your bank’s online account access and take a percentage (I encourage 10%) and have it automatically transferred out of your checking account the following day after you get paid.
Many live paycheck-to-paycheck. If you take 10% and get it out of your account, and live paycheck-to-paycheck with the rest you have just made your financial future better! Where should you send this money? It depends on what your biggest goal is. If emergency savings is your main problem, put it into a savings account. If you are behind on your retirement savings, send it into your Roth IRA.
Most people inherently understand that living below your paycheck and keeping debts low is the key to long-term success. This is the step that makes it happen! Don’t let another day go by before you make this change! This is THE KEY! Most of us will find a good reason to spend the money if you have access. So, get rid of it! Make it move in the right direction.
“But I can’t cut 10% out of my spending!” you might say.
Have you tried? How did you make it when your income was 10% less? You will most likely find a way.
What if you would have done this 10 years ago?
How different would your financial picture be if you had started this years ago? How much happiness came from that extra 10% of spending? Compare that to how much happiness would have come from saving it!
Are you are stressed about your debts, lack of retirement funding, lack of emergency saving? I would bet that saving that last 10% would have been of more value to you than the value you received by spending it.
What about the next 10 years?