Protect This One Thing, If You Want To Win With Money
One of the simplest things that many of us fail to do when it comes to money is to protect it. Believe it or not, we are at war when it comes to our money! The marketing campaigns of companies are downright fantastic and if we aren't careful, we will hand over every dollar we have, and even dollars we don't have by going into debt to buy their stuff. Have you ever gone to target for one item, but walked out with a cart full? LOL! See, I knew you'd understand with that example!
We don’t look at money as something that needs to be protected, but you need to start! That's not only advice from me, that's advice from millionaires and people who are having success with money!
Money is more than just something that you spend frivolously and save on occasion. Money is the key to future opportunity. The less money you have, the less opportunities. The more money you have the more opportunities.
- Retiring with a good chunk of cash!
- Traveling and going on paid for vacations!
- Taking a job that pays you less but fits your passion. Life isn't just about money!
- Deciding to stay home with your kids, rather than work full-time.
- Opening your very own full-time business.
- Simply doing more of the things you love.
And the list goes on!
A mentor of mine, and a guy who has taught me a lot says it this way, "Your income is your greatest wealth building tool!" - Dave Ramsey
Most people are living paycheck to paycheck. Their income is being used to make other people rich. Here's how it goes for most people. You work hard, 40, 50, 60 or more hours per week, you get paid, and immediately all that money is gone because of stuff, debt, and payments. Sounds eerily familiar, right? If you want to change your financial course you have to take back your income and protect it to help you and your future!
So let’s talk about how you can start protecting your money to secure your future.
- Understand that your income is your greatest tool. The money you earn needs to be protected at all costs. If you feel like you’re not making enough, find ways to make more. Have a garage sale; pick up a second job, etc.
- Pay yourself first. As soon as you receive your money, deposit some into a savings account. Ultimately, the more you save, the more you earn. This might be hard at first, but this is what makes people wealthy and have some scratch in a bank account. Do it!
- Budget your money. Only 32% of households do it, and guess what? The other 70% that don't are suffering because of it. You can’t protect your money if you don’t know where it’s going. This is such an important part of your income protection plan. Budgeting your money helps you keep your spending in check, so you can keep more of it in your pocket.
- If your company offers a 401(k), take advantage of it. ESPECIALLY if they have a match. Your employer wants to reward you for your years of service, by helping you earn money for retirement. This is more money they are paying you when you invest, but when you don't do it, it's like telling them you don't want the money. CRAZY! Now, sure, you have to contribute, but they will match your contributions up to a certain amount. So talk to your company's payroll and benefits manager about how to enroll.
- Get out of debt! If you're making monthly payments on a debt you owe, you're not winning with money. Especially if you're only paying the minimum. Being in debt equals interest, and that interest is costing you money. By paying off your debt you will be saving yourself money and protecting your income to go towards things that will help your dollars turn into more dollars.
I hope you find these tips to be a good starting point. Many may see this as being too frugal, but those are usually the people who don't have any money in the bank. When it comes to protecting your money, have a millionaire mindset. Millionaires know all about protecting their money. That's why they have so much of it.