Pay Yourself First
The first lesson to learn is how to get your finances under control with a budget.
Reading The Richest Man in Babylon by George S. Clason will help with this as it teaches some valuable lessons about wealth accumulation.
The primary message is to pay yourself first before any spending, set at least 10% of your earnings aside and if you can afford more, even better!
Where do I start?
List your expenditure on a notepad, spreadsheet, whiteboard or anything else you may prefer, and see how much you have left from your income. Apps such as Money Dashboard can help by connecting to your accounts and listing your transactions.
Total the costs up against your income and if you have 10% or more left, excellent! Before you splash it celebrating think about how you can put that money to work for you to compound and grow into more.
If you don't have anything to spare or are spending more than your income it's time to work on reducing your spending. Unsubscribe from all those emails encouraging you to buy things you don't need and disable notifications on your shopping apps, or uninstall them completely. Consider what you can delay buying until later, look for a cheaper alternative, or find one on the FREExchange. In the event this isn't possible send an email to us using the button at the bottom of the page and we will connect you to the services you need.
Compounding
Once you have set some money aside it's time to multiply it to secure your future.
This can be done through investment in a house, business, hobby, passion, stocks, crypto, a service for the FREEconomy ecosystem or anything else that you enjoy and can create value in your life and those around you.
Money: Master The Game by Tony Robbins shares his journey interviewing some of the most seasoned investors and teaches about the power of ownership and investing.
Investing into individual companies requires a lot of research so if you haven't got time for this you can use index or exchange-traded funds (ETFs) to diversify across a range of leading companies in the stock market. Importantly the final principle of the book highlights the power of giving, as the laws of the universe stipulate the more we give the more we receive, making FREEconomic living fulfilling in every way possible.
It's worth noting the idea of compounding doesn’t just apply to money, it can also be used to increase health, education, and any area you want to improve by taking small, consistent steps towards a specific goal. This is expressed well in The Compound Effect by Darren Hardy.
The key to successfully applying these principles is taking ownership of your destiny, accepting that all we do is our own choice and we are the result of our actions. Some days will be easier than others but embrace the journey and by committing to your plan each day you can be sure that you will be happy with the end results.
I hope you've found this information useful, please send in any questions or feedback using the email button at the bottom of the page.
