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Paying Yourself First to Grow Your Wealth Automatically
By Lyn Bell
Look at any financial planning book in a bookstore or library you are going to see the same advice -- that if you want to accrue enough money to retire someday you must begin by budgeting. Good advice but the problem is that when you budget, you are paying everyone else first -- the landlord, credit card companies, the bank, the power company, and so on. Even with your best intentions, you end up with next to nothing to put in the bank.
You end up reprimanding yourself and make a promise to do better next month. But there always seem to be unexpected bills to pay, unexpected sales you just have to take advantage of�.
But there is a strategy that works�and it�s simple. Every time you get paid or make a profit or come into money from any source, put a fixed percentage of it into a savings account right away -- before you pay any of your bills.
This is what we call �paying yourself first� and it works.
Think of yourself as a business. As owner of that business it is your job is to make a healthy profit. The money you put into your special savings account is your profit and everything you spend after that are your expenses. These are your bills etc.
Only the part that goes into the savings account is really yours. It is your responsibility as an individual and �owner� of your personal business to take care of you and your family and become financially independent. So pay yourself before your bills!
The best way to have this �profit� of yours paid is automatically, if possible. If you are not doing this now, give it a try. You'll be amazed at how fast your personal profit account grows.
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Budget Tip: White Vinegar
Not only is white vinegar an inexpensive and effective household cleaner it is also environmentally friendly. Some uses:
� It is great at cleaning glass shower doors and avoiding those hard water spots.
� Try it in the microwave �half fill a bowl with white vinegar and half water. Boil this in the microwave and it will loosen any baked on food and deodorise the microwave, wipe clean.
� Deodorise a drain with half a cup of baking soda and half hot white vinegar. Pour this in the sink and leave for five minutes then pour hot water down the sink.