No 1 Rule of Wealth Creation

No 1 Rule of Wealth Creation
The number one rule of wealth creation must be "Pay
Yourself First".

What do I mean by that, simply whatever you earn per month
you take out a minimum of 10% and put it into your savings
account or your investment account; you live and pay your
bills with what you have left. You PAY YOURSELF FIRST

I know, I know, I can hear you say "How can I do that, it's
taking me all my time to keep my head above water as it is".

Well what you must do is sit down and have an honest look
at what you are spending your money on.

Put a basic profit and loss sheet together and at this
stage it does not need to be complicated. Very few people
do this.

The budget plan poor people work to, works like this.

Go out and earn as much money as you can, pay the bills,
spend the rest, because that is how much it costs to live.
This plan and way of working will only keep you working
hand to mouth and keep you on the treadmill until you die.

So pick up the pen and paper and let's have a look.

On the left-hand side of the paper write down your monthly
income. That is everything that is coming into the
household, your salary, your spouse's salary and any other
form of income.

I don't want to hear "I don't know it varies every month"
Work a monthly average out or work to your basic rate.

On the right-hand side of the paper write down everything
that you are paying out per month, make a full list.

I don't want to hear "I don't know some things we pay for
quarterly" work out how much you are paying a year and
divide it by twelve. O.K. To be solvent your left hand
total should be higher than your right hand total.

If you're right hand total is higher than your left hand
total subtract the left hand from the right hand total and
this will show you how much you are running in to debt each
month.

For some this little exercise is an eye opener of how our
spending can get out of control and slip through the net if
not kept a check on. But let's go back to this paying your
self first.

Wealth can only be created by not consuming, so we need to
stop spending and create the habit of saving. Therefore you
need to look at your right hand column to see where you can
stop consuming.

To be successful at this you must have an honest desire to
create your own wealth and the determination and discipline
to change your lifestyle so it's imperative you know what
you want and why you are doing this.

Be honest with yourself, where can you cut back?

On a £20,000 per annum net income you will need to be
paying yourself £2,000 per year. That is
£166.67 per month.

Where is that going to come from? So let's look at some of
the most common areas of our uncontrolled consumerism.

If you spend £5 a day on cigarettes (only poor people
smoke) that's £35 a week, or £140 a month.

If you drink on average of two pints of beer a day at an
average cost of £2.60 a pint this is £36.40 a
week or £145.60 a month.

Two bottles of wine a week could cost on average £12
a week or £48 a month.

Have an honest look at fuel consumption for your vehicle,
could you not use it so much, could you walk more, this
would keep you healthier, could you make a deal with
someone to share the costs of running too and from work.

Have a look at the food bill, can you cut costs or get
better value for your money by not buying conveniences,
sweets and junk food.

Take a look at your utilities; switch off the lights and
electronic equipment when on standby, cut back on water and
gas usage.

Nowadays you won't be looked at as being a miser or
skinflint but a global friendly eco warrior.

What I am saying here and I think you will agree, with a
little bit of thought and effort you can change your habits
and lifestyle in small ways to find that 10% you need to
start the ball rolling.

Take an honest look at the No 1 Rule of Wealth Creation
"Pay Yourself First" and you will soon see how to turn
these small gains into massive wealth creation.

----------------------------------------------------
Barry Share is the Founder and Editorial Director of "The
New Lifestyle Programme" Where you can get your copy of the
amazing..."Design for your Success" a 7 step plan to
achieving wealth health and happiness
=> http://newlifestylepro.com/design-for success.html