Guide to Wealth Creation

Chapter 10

Pay Yourself First

Have you ever felt that after you've paid the rent or mortgage, bought the groceries, the clothes and filled the car with petrol you'll keep the rest for investment? And then ... guess how much was left? A big fat zero. In other words, after you've paid everyone else, there was nothing left for you! You're the person who did all the work and now you don't get paid!

There is only one answer.

You need to put yourself at the font of the line! As soon as you receive your pay, take out at least 10% of your total income and deposit it into your investment account. Then budget to live on what is left - even it if means dry toast for dinner until your next pay packet. If you can save more than 10% all the better.

But whatever you do - pay yourself first and save and invest at least 10% of your income with each and every pay packet.

Oh, I�ve heard all this before.
I know, you�ve probably heard this before and that�s because this valuable wealth secret has been around for a long time. In fact, I believe that if you follow this simple principle from an early age - save and invest at least 10% of your gross earnings every pay packet - you can easily become a millionaire in your lifetime.

If you�ve heard this before and are not practicing it right now, you don�t know it. You need to do it and apply it consistently. That is a sure-fire path to wealth.

In the next chapter I�ll explain why this works through a principle Albert Einstein called "the 8th wonder of the world."

However, just before you turn the page . . . you may be thinking to yourself: "sure I�d like to pay myself first and keep aside 10%, but I can�t get by on what I�m earning right now! How on earth can I find another 10%?

You�re not alone. Almost everyone says the same thing. For thousands of years people have complained that they "can�t afford to save" and believing their own doubts and beliefs, they never do. Predictably, since they never start, they never accumulate any money! Their answer is that they�ll put aside some money as soon as they earn more. As you�ve probably already experienced, this never happens because the moment you earn more money your spending seems to increase as well.

The first step to becoming wealthy is not investing. The first step is personal money management. Here�s another one of my important wealth tips: It�s not about how much you earn - it�s about how you manage what you earn.

To pay off your debts or to increase your savings, you are going to have to spend less than you earn. That�s another important wealth tip. Making more money will not make you rich. Spending less will!