HOW TO ALLOCATE YOUR INCOME
Managing money is a lot harder than making money it sounds counter intuitive, right?
But, its more challenging because we need to lead our money rather than being led by it.
In this thread, we'll show you exactly how to do that
Managing money is a lot harder than making money it sounds counter intuitive, right?
But, its more challenging because we need to lead our money rather than being led by it.
In this thread, we'll show you exactly how to do that
First of all, we need to tell our money where to go.
If we want our money to work for us, we actually have to be very intentional about giving it a job title.
If we want our money to work for us, we actually have to be very intentional about giving it a job title.
This thread is all about allocating your income effectively.
Its underpinned by the following 3 principals so if you remember anything, let it be this:
• Habits create structure
• Structure creates systems
• Systems create wealth
Its underpinned by the following 3 principals so if you remember anything, let it be this:
• Habits create structure
• Structure creates systems
• Systems create wealth
3 STEPS TO ALLOCATE YOUR INCOME
UNDERSTAND YOUR PRIORITIES
1. Track your spending.
Gain awareness of how you are currently spending your income.
There are some fancy ways to do this, but a good old pen and paper works perfectly.
UNDERSTAND YOUR PRIORITIES
1. Track your spending.
Gain awareness of how you are currently spending your income.
There are some fancy ways to do this, but a good old pen and paper works perfectly.
Download your bank statements for the last 3 months and see what trends emerge.
If youd like to track it on a spreadsheet, Ive put together a free and easy-to-use budget template for you.
Check it out here 👇
thewealthcoachsa.com
If youd like to track it on a spreadsheet, Ive put together a free and easy-to-use budget template for you.
Check it out here 👇
thewealthcoachsa.com
2. Define your priorities
What is important to you and where does your focus need to be in the short, medium and long term?
Do you need to build up an emergency fund or maybe cut down on some debt?
What is important to you and where does your focus need to be in the short, medium and long term?
Do you need to build up an emergency fund or maybe cut down on some debt?
Are you saving up for an overseas holiday trip?
Remember, our basic needs (food, housing costs, clothes) and insurance (medical aid, income protection) should also be considered in this step.
Remember, our basic needs (food, housing costs, clothes) and insurance (medical aid, income protection) should also be considered in this step.
Whatever it may be, your priorities are exactly that your priorities.
It should reflect your values and ultimately what is important to you.
It should reflect your values and ultimately what is important to you.
3. Allocate your income according to your priorities.
The last step is just a little maths.
Work out what percentage of your income needs to be allocated to each priority.
The pie chart below can be used to guide your thinking.
The last step is just a little maths.
Work out what percentage of your income needs to be allocated to each priority.
The pie chart below can be used to guide your thinking.
This article was written by the one and only @AronSamuels7, give him a follow!
Be sure to go check him out on the @FinMeUp app where he drops tons of quality content like this💪
If you enjoyed the thread:
-like and rt the first tweet
-follow us @FinMeUp for more
Be sure to go check him out on the @FinMeUp app where he drops tons of quality content like this💪
If you enjoyed the thread:
-like and rt the first tweet
-follow us @FinMeUp for more
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