Money Tip

In his book "Retire Young, Retire Rich", Robert Kiyosaki mentions that in order to start becoming wealthy, we all have to start being generous to ourselves.

 

We need to start small and dream big.

 

To do this, you’ll need 3 piggy banks. One piggy bank is for a rainy day (savings), one is for a sunny day (investing) and the other for tithing, giving to religious causes and charity (eliminates greed).

 

Each day, you’ll be putting ten cents, fifty cents or $1 into each bank. At the end of the month your situation will look like this, assuming $1 per day.

 

Savings                            $30

Investments                     $30

Tithing & Charity               $30

 

This is a great start. In one month you can see how your balances are increasing each and every day.

 

Imagine what might happen in thirty years.

 

The point to remember is you are really increasing the habit or discipline of paying yourself first or being generous to yourself.

 

One of the reasons poor people are poor, is probably because they treat themselves poorly. So by paying yourself first, you are financially enriching yourself, your soul and your future.

 

I began this back in 2002. Savings were for a rainy day, investments for a sunny day.
In December 2002 I went on holiday to Lindeman Island in the Whitsundays. I decided to take about $300 in savings just to have a good time. And indeed that’s what it was – a darn good time not having to worry about the costs of everything.

 

It was already saved for on a daily basis.

 

Today, I’m putting away $9 per day. I have 7 piggy banks. It’s like this :

• Sunny Day                         $2
• Rainy Day                          $2
• Mom & Dad’s Holiday           $1
• Daughter’s Holiday              $1
• Charity 1                            $1
• Charity 2                            $1
• Charity 3                            $1

Try it. It’s easy and most gratifying at the end of the year.

If you find the daily amounts unaffordable, start off small and then look at ways to cut out “money wasting” on things like smoking, excessive drinking and the biggest money waster of all – take aways.

Warren Kruger is an Australian Tax Specialist and Advisor. For a FREE Report "7 Essential Strategies to Reduce Your Taxation NOW!" Sign Up RIGHT NOW in the Opt-In box on the top right hand side.

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About The Author

Warren Kruger is an Australian Tax Specialist and Advisor. For a FREE Report “7 Essential Strategies to Reduce Your Taxation NOW!”,enter your name and email address in the Opt In Box located on the top right hand side of this article.