Thought-1 -Let's Share Thoughts.

My Thoughts

Thought 1:

I would like to share some knowledge acquired through reading books. I am not a financial advisor just felt these books that I read needed to be shared with everyone. You may know better than me. I would be happy to listen to your thoughts. All these years I just talked and never listened properly. I am trying to change that habit. I learned a thing or two from books. The people who know me might say why don't you follow these yourself. I am trying to change, I admit I made a lot of mistakes, but aren't we built that way to learn from mistakes? :-p. Let's share the knowledge with each other. 

The Richest Man in Babylon Thought me:

Pay yourself first. 

Got Confused!

Let me explain it to you.  Let's say you make 1000$ per month. 

The first thing you should be doing is taking 1/10 of your salary which is 100$ in a savings account AKA paying yourself.

Plan the rest of your monthly finances with the remaining 900$. Easy right there without knowing you saved 100$ a month.

You might say 100$ is a pretty big amount to save. Ok, let's take a step back and think. Let me give you my own example, there were numerous times when I ordered food just because I was too lazy to get up from my bed and go to the kitchen, and ended up spending $20 including the delivery and service fee for 10$ food. Every time I order food I am robbed of my savings.

If you cook you will save yourself 20$. If you are feeling lazy to cook take yourself for a walk to a nearby restaurant. There you saved yourself 10$. Making these small changes can make a huge impact on your savings. What if you ordered 6 times a week make it 3 and save the rest of the amount. 

I know a lot of you will say, cooking is a lot of work and hard to do. Let me be honest,   I'm a bad cook myself :-p. How about a bread and peanut butter sandwich I don't think it takes rocket science to make that. there you go you saved yourself some money.

Now ask yourself is it that difficult to save 1/10 of your paycheck. Be Honest with yourself.

You might think it's a hassle to go through this process of transferring 1/10 of your paycheck every 15 days. There are lots of tools available in your Banking app. Just set the automatic transfer for let's say x amount just one or 2 days after your regular payday.  Without you knowing within 3 months you might be saving a lot.

That's all for this week! Hope I shared some Knowledge. Let's meet Next Week.

P.S. Let me your thoughts on this via comments.