Two Main principals in money habit, Discipline by force and discipline by choice

 

    Hi everyone, today's post is a bit unique, I want to focus a little on the mindset when it comes to saving money and I believe its one concept that needs to be put in wording. When I go and talk to families that are making 80K to 100K income, you would usually think that they are already well off and know how to manage their money, but I ask them why are they still struggling with their money even when they are earning so much? The simple answer at the end of the day is that they're spending more than that they are earning. In life there are two disciplines when it comes to money, a discipline that is forced upon you, such as cellphone bills, utility bills, internet bills, but when it comes to saving, its a discipline by choice. Which means you have a choice to save or not. To conclude, it's not how much you make that creates wealth, it is always about how much money you can save. For example, if you were making a nice annual income of 80k but spending 100k, you be more focused on surviving than actually planning for the future.

3 questions take home for everyone

• Do you save enough money for yourself?
• Do you have the emergency fund set for the next 6 months?
• Are you aware of how to structure your wealth properly to reduce taxation?