I use my bank for free bill pay, automatic transfers, and free of all ATM fees. I won’t pay for any of those services provided with a fee. Last month, I terminate my 15 years old account simply because the bank started to imposed a fee on that account.
Dont worry, there is always others will provide that service without any fee. These days, internet banking simplifies and improves banking processes, why pay fees?
Saving Plan
The simplest of all. Earn and save, save, save your earning. How much to save? Rule of thumb say 10% at least. The more the better. This is the concept of 'pay yourself first'. Two major difference between a business and an employee. Business spend before paying taxes. Employee pay taxes first before you spend.
You work hard to earn that income but when that income comes in every month, you pay bill, clothes, transportation, etc and have very little left or sometimes nothing at all. Then comes those "help" in the form of plastic money that even children knows it. More on this plastic later...
No matter how small your income is, paying yourself first is the best and logical thing to do to yourself. If you are not doing this, you are not fair to yourself. Agreed?
How does paying yourself help? Get back to the calculator and see how that 10% of monthly salary will add up through the years. Go, find out yourself.
You work hard to earn that income but when that income comes in every month, you pay bill, clothes, transportation, etc and have very little left or sometimes nothing at all. Then comes those "help" in the form of plastic money that even children knows it. More on this plastic later...
No matter how small your income is, paying yourself first is the best and logical thing to do to yourself. If you are not doing this, you are not fair to yourself. Agreed?
How does paying yourself help? Get back to the calculator and see how that 10% of monthly salary will add up through the years. Go, find out yourself.
Life doesn't require that we be the best, only that we try our best. Strive for excellence, not perfection. -- H. Jackson Brown Jr.
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earn and save,
pay yourself,
saving
Compounding
Simply generating income from previous income. Money generate money!
How? Initial Capital + income reinvested continuously for a number of years
With 10,000 as the only initial investment and compounded at 20% per year, will generate a return of 953,962.17 after 25 years. The almost million is money that comes in "with practically less effort". Find that investment, and you are there.
To see compounded amount at different rate, go here http://www.moneychimp.com/calculator/popup/calculator.htm to calculate and answer the extension to "what do I want" question, i.e. how much do I want?
Definitely, remember that compounding is your best friend.
Compounding is the eight wonder of the world ---Albert Einstien
How? Initial Capital + income reinvested continuously for a number of years
With 10,000 as the only initial investment and compounded at 20% per year, will generate a return of 953,962.17 after 25 years. The almost million is money that comes in "with practically less effort". Find that investment, and you are there.
To see compounded amount at different rate, go here http://www.moneychimp.com/calculator/popup/calculator.htm to calculate and answer the extension to "what do I want" question, i.e. how much do I want?
Definitely, remember that compounding is your best friend.
Compounding is the eight wonder of the world ---Albert Einstien
Labels:
compounding
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