Saving Properly

What is the first thing you usually do whenever you receive money? I am sure that most of you would say to pay the bills, pay the debts, and buy those things you needed. Then also most of you would say you are going to buy the things that you wanted. There is nothing wrong with that, actually, but how are your savings? It is so very typical that most of us would save whatever it is left with our money. Apparently, that is wrong because you are not saving properly and on this post, I am going to teach you how to do that.

One of the secrets of the most successful people is that they pay their self first. Whenever they receive their money, they do not spend it first instead they save it first. They knew that saving properly is very important because they would end up broke if they spend it first. Have you ever wondered why your wallet suddenly becomes empty even before you receive your next paycheck? That is because you spend them first instead of saving them. If you model the habits of successful people and know the basic of saving properly, you would be, at least, like them.

When it comes to saving properly, always remember either of these rules: 10-20-70 or 30-70. This means 10% tithes, 20% savings, and 70% expenses. It can also mean 30% savings and 70% expenses. The difference between the two is actually based on religious belief. If you give 10% of your money to your church, you would receive more blessings. But still it is up to you and your beliefs and I do not want to go beyond there.

For you to understand the basic of saving properly, here is an example:

Let us say you have earned $1000 from your online business. If you are going to give tithes, subtract first the 10% of $1000 and that would give you $100. Then give that $100 to your church or charities (only if you like). Since you already have $900 left, subtract 30% from that and it would give you $270 of savings. Now that you already have $630 left, that would be your expense.

If you are not going to give tithes, do the 30-70 formula. From $1000, subtract 30% and that would give you $700 for your savings. Whatever it is left, that would be your expense.

See, saving properly is not that hard. If you wondered how I made that computation, always remember that 10% is equivalent to .10, 30% is .30 and 70% is .70.

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