Three important money lessons that should have been taught to us at school coming from a qualified accountant and a former investment banker. Number one, money is just an exchange of value.
The bigger the problem that you can solve and the more people that you can help. Whether it’s through product services or knowledge, the more money you make. Number two, spending Freely doesn’t come from making more money. It comes from knowing that you can afford what you are buying without jeopardizing your bigger life goals. I follow the three FFF strategy when it comes to budgeting with a 20 percent allocated to my spend a freely category.
Save this for my recommended split and three not all income streams are created to equal. While your job will be your primary wealth building tool, the money you make through it is taxed. The most don’t forget to focus on other income streams with lower tax rates like investment income.
If you feel like you never have enough money left over to save try this coming from a qualified accountant and a former investment banker, Parkinson’s law is that work will expand to fill the time given to it.
If you give yourself two months to do something, it will take you two months to do it, whereas if you give yourself two days to do it, you’ll find a way to get it done in two days. The same concept applies to money. Your spending will increase to match the available amount. If you have 2 thousand in your bank account, you’ll find a way to spend the full 2 thousand, whereas if you only have 1 thousand in your bank account, your brain will find a way to restruck your spending to make do with that 1 thousand.
That’s why as soon as you get paid, take a portion of your paycheck and put it into another account.
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