How to saving money systematically
How to start saving currency systematically? Follow this saving money system. It starts with income from a job. Controlling your expenses. Track with automation. Create online company for another source of cash. Learn to use that currency to create other source of cash investing in stocks for income. Retire quicker with a little consistency of following a system.
Action Step 1:
Fill out the forms to assess your financial intelligence:
Action Step 2:
Open A Checking Account for your paycheck and two savings accounts for your short and long term emergency savings.
Action Step 3:
Automate your checks to go into your account from your job through ACH or put each paper check into the account that you receive.
Action Step 4:
Automate your savings to 401k through your employer to invest prior to tax and with company match.
Action Step 5:
Create your system to automate the extra cash left over after you pay your necessary expenses like food, utilities and liabilities (Rent, Car, Loans Or School Loans). The left over money is the amount that you specified through controlling your money. This is paying yourself first.
Setting your savings
Example in multiple steps:
$20 Short term emergency savings (Goal: $1,500 for refrigerator, Car problem or A/C problem)
$20 Long term emergency savings (Goal: 6 months of living without income)
$20 Payoff high interest loans like credit cards (Purpose: Increase your savings potential once paid off)
Next step of this example is investing:
$20 invest in yourself to increase your value to others to charge more for a skill or purchase something that you can sell for more money to create a profit. Keep reinvesting until you accumulate more inventory to sell for profit.
$20 invest for a yield in a stock or interest in. The point is for your money to make money for you as another stream of income.
$20 to guard yourself against a currency that may lose all of its value in hyperinflation. Real money is silver and gold coins. This will maintain value if your currency gets to a point that a wheel barrel full of cash cannot get you a can of food.
Germany hyperinflation, Venezuela hyperinflation, Zimbabwe hyperinflation or 20 others through the years. They were throwing the currency away. Zimbabwe man showing a sign with trillion note on the sign saying starving trillionaire. Yes! This was recent. These are uncertain times and you must get financial education to protect yourself. I started Startupraw.com to educate people. Yes it can happen here. If you think that it cannot. It is as a result of not understanding economics and macroeconomics. All economies of the world are tied together. England was the reserve currency prior to us and they thought that it could not happen to them to lose reserve currency status. Asia is the area of the 21st century not us. England created everything, next it was the United States and for the last twenty years it is China.
I.) Create an account login online for your checking and savings accounts. Automate your savings to transfer from checking every pay period to each savings account. Automate your payment towards credit card every pay period. You can login manually every pay period to transfer it is your choice. Allocate one third of savings to short term savings, long term savings and credit card.
II.) Write out your plan for emergency savings and credit card payoff time frame.
III.) Grow your savings with interest from treasuries while it sits in your account. Go to United States Treasury for account to attach to your savings.
IV.) Write out your investing strategy when you reach your goal of six months of savings. How much to pay off loan with interest? Write out the next phase to invest when you reach your goal of saving and payoff of loan with interest. What is your allocation to each investment? What is your strategy for increase for monthly income?
This is for informational purposes only. This is my example not advice for you. You are responsible for your own investment to research using a license professional. I am not a license professional.
My strategy is to show my goal as example only for information purpose:
- WordPress Website Company (E-Commerce, Affiliate Marketing Or Membership)
- Real estate flip for profit
Pay monthly expense and save 40%
- Treasury for hedge when market falls
- Real Estate Investment Trusts for income
Insurance (Collapse, Catastrophe or Country Crossing)
- Cash to cover one year expense
- Gold And silver as insurance against currency going to zero in purchase power
Create your own plan. Get professional council with research to write out your own plan for investment.
Action Step 6:
Spend time learning to increase your income. Increase your financial intelligence through learning. Why?
We are taught to go to school to train for a skill and to climb the ladder to increase income through raises. Invest for 40 years in a 401k to retire. If we find ourselves stretched financially, then we go get another job to make ends meet financially. Financial education goes against that grain of thinking.
Financial education is to increase income through multiple income while you shrink time to retire. It is a psychology that keeps people poor or wealthy. Another way to think of it is to increase actions that can lead to income. I start to offer 10 services. 8 flop with 2 that create income. I want to create 10 services to sell with the 2 that work. 8 flop with 2 that create income. The time to retire shrink with income. I now can shrink retirement to 10 years not 40 years.
The Goal is the 30% Rule: Invest 10%, Create Extra Income 10% & Support The Gospel 10%. Start Small 3%- 1%, 1% & 1%.
The links below is for an action step plan. Find out what your financial situation is with a financial assessment with asset and liability statement. The next step is to write your budget to cut expenses and switch to cheaper services to eliminate waste. The final step is to write out income statement to know how much is available to invest. Remember that you want to create something that can earn extra money online. You can start this for less than $100 a year. The next step will walkthrough the create a website for making money.
The cash flow that is available separate three ways. The amount that you are going to save in 401k take out of paycheck through employer to invest prior to tax automatically through the person that they use for employee contributions to 401k. Save one third in a savings account for emergency fund. The other third pay off credit cards or loans. You can automate through online financial website.
Automate the portion of your income to:
- Emergency fund
- Savings IRA or 401K
- Payoff debt
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