In the book “The Richest Man in Babylon” the story emphasises the importance of paying yourself 10% of your income first. Rather than paying other companies and people who supply you with goods and services first, you put yourself first by putting aside 10% of your income. You then pay all your other living expenses using the balance of your income.
This is a popular forced saving method that has been endorsed over the years by many financial and investment gurus. It has often been said that if you apply this method just on its own, the growth gained through compounding and wise investing can make you financially secure.
Think of your money as being a precious resource and building your financial reserves and freedom is very important. Believe it, or not – through this method (all be it somewhat “accelerated”).
Another resource that we can have some control over is just as precious as money………it’s our time.
Time may even be more important than money. Money comes and goes, whereas when time is gone, it’s precious and there is no way of bringing it back.
Have you thought about applying the principle of paying yourself first with your income to paying yourself first with time? How do you spend your time? Where does it all go? Who do you give it to? What activities are chewing up your time? How many things are waiting for you to allocate some time to them?
Many of us are time-poor, but in a hurry to get the results and successes. We chase “instant success” and “quick fixes”. Why? Because we do not have time. We waste it away by giving it to those who matter less than ourselves or activities that don’t deserve the high time allocation that we give them.
What would you do if you had some extra time? Take a moment to think. What would you do? Would you study more? Would you analyse your investments more? Would you relax more? Would you take stock of where you are at more? Would you make more rational decisions about your investments and your life? Would you spend this time examining and better managing your property portfolio? Would you spend more time researching property opportunities?
You might even find some extra time to come into our office (or phone us) at Property Friends and have a chat about your investment property wealth plan and the strategies we can assist you with to give your portfolio a massive boost.
So how about applying the same tried and tested the principle of paying yourself first to your time? Let us do a simple calculation.
You have 24 hours each day
Less mandatory time for say 8 hrs for sleep and 2 hrs for meals and chores = 10hrs
Balance = 14 hrs @10% = 1.4 hrs
This means that 1.4 hours a day will equate to about 10% of your available time. The important thing is you pay yourself first. Just like the money side of things, if you leave yourself as the last one to be paid, there will not be any money left for you and there will not be any time left for you. Pay yourself first.
What do you do with your time? Just like the money you put aside for yourself, you need to make it work for you, not leave it under your bed. Same with your time, you need to make it work for you. Then take the next step in your development and education. Give this concept the time it needs and deserves.
Create a new habit and try it out for at least a month…….just like how the money you put aside grows exponentially, use your time wisely and your knowledge and your profits will do the same.