Money Management Habits 2

So now you know how to put your money in 6 different jars. You can recap the 6 Jars System here again. :D

Next up! How should you do it? When should you start putting in your money into these 6 jars?

The answer is...

Divide all your money up into these jars once you get them!

In other words...

PAY YOURSELF FIRST!

Once you get your pay/allowance, divide them into the 6 jars accordingly. 6 jars, and just divide them up.

Nothing is more important than yourself. Not your phone bills, not your latest gadget, not your monthly car loans/rentals... You are most Important!!

Why I say this.

I had a friend while I'm still serving national service in APD. He's a regular. And his monthly salary is about 2000+. He has to minus CPF contributions, so that left with around 1700+.

Whenever he got his money, he use it to pay his monthly bike installments, his bills, then upgrade his bike also. In the end, he is just left with around $500 for the entire month. He have not add in his daily expenses, petrol for his bike, his indulgences.

And so, he always complained that he has no money. Not enough money to use, no money to buy his stuffs, no money to save.

When I pop him this statement, "Pay Yourself First". He said he can't, 'cause he has too much loans/bills to clear, and he always left with $500 plus after the 2nd day, to spend for rest of the month.

And I told him what he can do. Set aside a sum of money for himself first when he get the money. And use the remainder to pay for his bills. However, he told me he don't have enough money in the end to pay his loans/installments.

Then, I told him, this is the time to force you to look into opportunities outside the world, to improve your income. If this income stream is not enough to supply water for your BIG POOL, you should create another stream so that more water can flow into your BIG POOL yea?

And it should not be the case where you lower down your means of living to pay off your bills/installments. Instead, look to increase your income bracket!! And that is the way to get more money, become Richer!!

So guys, Pay Yourself First. If your planned expenses is not enough to cover for your desired/actual expenses, Look to create another income stream, increase your income bracket, get more money IN!

And not lower down your living standards to pay for installments/loans/bills. You are more important than these banks/companies who are after your money.

:D

What do you think? Feel free to share with me!