WRITTEN BY SAM X RENICK
(A.K.A. SAM, SAM, THE MONYEY MAN):
Yourself First! ©
Sam X Renick
I'll never forget my father. He was and is my hero. I still hear him
“Son, in the United States, you can accomplish any dream, if
you work hard, have a plan and take consistent action. It doesn't
matter how much you have to start. Anyone can make dreams come true
if they're willing to pay the price. Make sure you get in the habit
of paying yourself first. Take a part of everything you receive and
immediately get it out of your hands. That will make it a lot easier
for you to resist daily spending temptations that compromise your
dreams. Save. Invest. Put money into real estate, stocks or your own
business. Don't trade your hopes and dreams for less than you deserve.
Son, make your dreams come true!”
According to my father's formula, I have always felt it smart to at
a minimum take at least 10 percent off the top. When I first started
working, I personally took 33 percent off the top, because I felt
I was in a window of opportunity where my expenses were artificially
low. Additionally, whenever I received a raise, I'd take half of that
raise and allocate it to saving and investment accounts. The other
half went to taxes and increasing my standard of living.
Here are some tips on getting money out of your hands:
1. Have money automatically deducted from your paycheck and directed
to long-term saving and investment accounts, such as 401(k)s, Individual
Retirement Accounts and Thrift Savings accounts.
2. Don't keep large balances in your checking account. This will help
keep you from overspending. It is worth the inconvenience of having
to transfer money periodically from other accounts to meet unexpected
expenses. Same goes for the ATM. Take minimal amounts from the ATM
and make more trips to the ATM. Cash spent from ATM withdrawals tends
to be largely unaccounted for.
3. Never carry more than one credit card with you. Pay off monthly
balances. Naturally, never add to a credit card company's profits
at the expense of your own dreams by paying monthly interest charges
and late fees.
Sam X Renick is the author of two financial books for children: It’s
a Habit, Sammy Rabbit! and Will Sammy Ride the World’s First
Space Coaster?; he also produced the music CD titled Get in the Habit!;
and is the founder of The It’s a Habit! Company, Inc., a socially
conscious corporation dedicated to providing parents and educators
with wholesome, entertaining and educational tools that help them
encourage children to develop good habits, especially saving money.
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