Page 35 - Blance book

A great time to introduce the budgeting principle to your
children is when they start receiving an allowance. A great
example would be when your child is saving to buy a toy, go to
the movies, or paying tithes to the church. Have them fill out
their own budget sheet. They may not have many line items,
but you are teaching the principle of budgeting and helping
them to understand cash flow.

The next step after you review every dollar that was spent is to make a list
with two headings: NEED and WANT. Add up every dollar in NEED category
and then WANT. The WANT category is where the money comes from for
investing. This is where self sacrifice and commitment comes into play.

When it comes to saving and investing money, the earlier you start the better.
Compound of interest will work in your favor over time. I know some of you
may be thinking, I don’t have enough money to save or invest. I say yes you do!
Look at this in a different way: imagine that you are the CEO of your company.
With each check that you receive, you should pay yourself first before you pay
bills. The amount that we pay ourself will have to be determine by our monthly
budget. Most people start out paying themselves last to find out there is not
much money left. You work hard for the money you make and you should be
the first one to get paid.

Are you leaving money on the table? A 401k plan
is a retirement savings investment vehicle that has a
company dollar match. Available in most workplaces
as an employee benefit, the company contribution
match will vary by company, but you should contribute 15% of your earnings
to the plan, regardless of company contribution. This will be part of your
nest egg for retirement. It’s so disheartening when you hear how so many
people reach the age of 60 who didn’t make any effort to contribute to their
retirement plan. Sadly, they discover very fast that in their retirement, they
could have used that money. But it was too late. Don’t let that happen to you.

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