First, the title of today's entry comes from an article of Yahoo Finance of the same name, A Simple Way to Become Wealthy. And it is that article that I will do a small review of today, however, I do think that there is a very strong point laid out in the article that we can all learn from.
"He told me saving and investing wasn't hard, you just have to treat it like a bill. He said, "When your paycheck comes in each month, you pay your bills, right?" I nodded. "So treat investing like a bill. If you want to max out your Roth IRA, divide the maximum contribution by 12 and send that amount to your investment account each month. If you want to make it easier, then go to the finance office and set up an automatic allotment from your paycheck and you'll never think about it again."
"It turns out he was right. It's not that I didn't have enough money to invest. I just wasn't prioritizing how I used my money."
And that is the key, prioritizing how we use our money. Have any of you ever thought of yourself as a bill that you are required to pay every month? Actually, let me rephrase that, have any of us actually ever wanted to see ourselves as a bill that we must pay?
For the sake of honesty, I can tell you that the phrasing used in this article is something that I have never even considered. But man, what a concept!
Just picture your budget, and then picture yourself adding yourself to it with a number, and then paying that money into either a simple savings plan or anything else? What would the outcome be?
I can tell you that while I am typing on a different computer tonight, first thing tomorrow, I am adding myself as a "payee" on my personal budget.
Amazing! Sometimes when we concentrate so hard on something, we miss the very obvious things that are right in front of our noses! I love it!
So how about you all? Are you in? Have you, or do you currently, see yourself as a payee?
As always, thank you...The Runner
This is great and I can say this does work. Each month on the 15th and the 30th, a certain amount of money is automatically transferred into my savings account from my checking. I also pay most of my bills through an automatic withdraw. This will also help cut back on late fees. Through your advice in your first blog, I have made several cutbacks in my spending habits and have since increased the amount that is automatically transferred to savings. I absolutely agree with this blog and can say until I treated my savings account as a bill that needed to be paid each month, the balance never seemed to grow. The intention was there, but the money was always spent before remembering that I needed to contribute to my savings. Now, if you can recommend something that will pay a better interest rate than a simple savings account with a local bank, I am all ears.
ReplyDeleteWell, I hope you enjoy the next posting!
ReplyDeleteP.S. - I thought I replied earlier, but I must have not hit post. Sorry!