I’ve decided to follow one set of rules during my road to building a HUGE asset base!
1. Live below my means (live on less cash than I make!)
- The 80/20 rule is what I’m going to use! – Live on 80% of take-home pay, Save/invest 20% of take-home pay
2. Increase my “means” (grow my income)
- This is one reason I’m excited about being self-employed… I get to decide how much money I make, so an increase in income is VERY, VERY possible!!
3. Follow the first two rules for the rest of my life!
- I don’t plan to follow this one to the “T” …. Because eventually I want to be able to live on 50% and save/invest 50%! 😉 Which is even better!
This December will be my first month living STRICTLY by this set of rules! &I’m looking forward to feeling like I got a raise because I’m expecting a raise in income in December (which will go along great with the $1,000 in extra income I earned this month!) and I just constructed an AMAZING and TOTALLY do-able budget for December! I’m ready to get focused and organized, financially! It looks like this will give me an AWESOME head-start to my next fiscal year starting in January!
My goal is to DOUBLE MY INCOME in 2014!
I’ll end 2013 with roughly $22,000 in total income working part-time jobs and being fairly lazy. But in December of 2014 it will be fun to see the difference in my 12 month income and overall NET WORTH compared to 2013! Now I’m developing a better work ethic, I work a part-time and own my own business now! So seeing the difference should be interesting!
Anyways… I’m curious. What financial rules do you live by? Let me know! 🙂