The most powerful tool to accelerate my cashflow that I have learnt (the hard way unfortunately) is the discipline of spending less than you earn, always paying yourself first and the art of delayed gratification.
To do this effectively you need to budget well, monitor your outgoings and of course, always pay yourself a minimum of 10% (more if able) of your gross earnings and put this aside for long term wealth creation. These funds you only use for either lump sum or cashflow increasing investments. The returns you achieve from these investments must also be reinvested.
For delayed gratification its all about – do I really need that right now ? (plasma TV, new devices, cars, etc). You will be surprised at how much we all blow on things we really dont need. Im on my third phone in four years…….probably didn't need them all !
I wished I learnt these skills at a much younger age and am am trying to teach these concepts to my kids now.
If you have debt (credit cards, personal loans etc), then you also need to get rid of these as fast as possible.
You'll be surprised at how quick you can mass savings, and given your young you have plenty of time to work on your income earned producing ability to also help. Without the other skills though, you'll find money continues to slip through fingers as we all tend to spend what we earn. Again, unfortunately learnt the hard way !
Choady is on the money. People say it's not just what you earn but how much you keep.
If the goal is important, then shop frugally, live as cheap as a mouse for a month, just try it,, turning off lights like mad, reduce heating or cooling, walk anytime possible instead of the car, delete bought lunches and cappuccinos, stay home, do everything yourself. It's only 30 days, and then u can ease the choker in alternate months. You'll amaze yourself.
What's your goal worth to you ? You'll soon find out.
Cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Choady wrote:the discipline of spending less than you earn, always paying yourself first and the art of delayed gratification.To do this effectively you need to budget well, monitor your outgoings and of course, always pay yourself a minimum of 10% (more if able) of your gross earnings and put this aside for long term wealth creation. These funds you only use for either lump sum or cashflow increasing investments. The returns you achieve from these investments must also be reinvested.
For delayed gratification its all about – do I really need that right now ? (plasma TV, new devices, cars, etc). You will be surprised at how much we all blow on things we really dont need. Im on my third phone in four years…….probably didn't need them all !
I wished I learnt these skills at a much younger age and am am trying to teach these concepts to my kids now.
If you have debt (credit cards, personal loans etc), then you also need to get rid of these as fast as possible.
Great comment Choady.
I don't even own a TV lol!
Personal lean can be over 17% and that's more than most investments out there!
I've found working you way up 10% in paying you self works best for permanent change and direct debit into an account you find it hard to to get access to works wonders!
All very true…….
However, as hard as I try I simply can't do…or should I say, don't want to go without my flat white in the morning.
I justify this because I've recently changed coffee shops…..
My new coffee shop stocks current copies of the financial review and the Australian so I don't have to buy them myself.
Happy days
Jack
Jt7 I can do one better lol
my wife an I have a sub news / Lotto store, I get the AFR every day for free and take it to my work, I can return it on Sunday and get a full refund, also the coffee shop across the road will gives me a free coffee every day providing I give them the Herald sun
again by Sunday I can rerun I lol
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Jpcashflow wrote:Jt7 I can do one better lolmy wife an I have a sub news / Lotto store, I get the AFR every day for free and take it to my work, I can return it on Sunday and get a full refund, also the coffee shop across the road will gives me a free coffee every day providing I give them the Herald sun
again by Sunday I can rerun I lol
Absolutely sensational! I can't top that one lol.
Jack
Sorry jack I'm Maltese it's in my DNA
Once I finishy e boom il email you jack
tips and tricks on how to save and why
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Jack you told me you hired out your Police uniform at weekends for fancy dress parties to increase serviceability.
Ohhhppps maybe i shouldn't have said that in case the Commission is a new member.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
haha loving the coffee and newspaper topics
You could start an E-bay business. My neighbour has 6 different accounts so he doesn''t have to pay as much tax makes a fortune by going to vinnies and auctions and just resells things.
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Yeah I was thinking that was something my girlfriend could do, she is at home two days a week while my daughter is in daycare so this would be a great thing for her to learn about. I just don't think she wants to put in hard work to get money……but I won't start there.
Thanks. I am learning everday.
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