[TheCDAllenGroup]

I want to reiterate a topic that I started about a month ago regarding the principle of "Paying Yourself First".

What is it? It is a systematic approach of deferring a percentage of your income to a savings account BEFORE paying your expenses (personally or in business).

For example, you earn $1K a month in your profession. First, you place a minimum of 5-10% [$50-$100] in a money-market or basic savings account. This account is to be used for future investments. It is not an emergency fund [aka "rainy day" money]. Secondly, you pay your expenses/bills. Get it? Put back 5-10% and then pay your bills. NOT the other way around [as most financially incompetent people do].

What if you don't have enough to meet this month's bills? If that occurs, you find another way to bring in additional income to meet your expenses. Getting a second job, doing odd jobs around your community, picking up cans, and/or selling your useless possessions are solutions to bringing in additional income. But you absolutely DO NOT TOUCH that account with your "pay yourself first" money [that's only to be used for investing].

You see, the principle of "Pay Yourself First" is a powerful principle in all of its simplicity. It creates pressure or leverage on you to be active in maintaining a positive cash flow. It forces you to take a second look at your expenses and eliminate the needless ones - those liabilities that keep burning a hole in your pocket. You let the possibility of getting the electricity turned off or the car repossessed be your motivation for getting out there and creating more income! YOU WILL NOT PAY YOUR BILLS AND SIT BROKE WITH NO PLANS OF INVESTING!

If you're reading this thread and get nothing else out of out but this post, please [for your own benefit] consider using this timeless principle of cash flow management. For instance, there are many [poor] individuals out there that work very hard, pay their bills, and they have NOTHING left in the end. And they repeat that cycle over and over again. That's called the "rat race" - and they're stuck in it. Your focus should be progress, not just mere survival.

Having a place to place funds for future investing is a must if you want to create wealth for yourself.