The 4 to 5 things that should happen to your check before you pay your bills?
I was thinking today and wanted to share with everyone a major key to financial progression. In order for a persons finances to experience a steady growth trend, I believe there are 5 prerequisites that should be met before ANY bills are paid.
1. Tithes (10% of monthly income)
2. Pay Taxes
3.Investments (401K,Stocks,Education Funds, Roth IRA etc..)
4.Savings (put money away for emergencies) typically 5% of your monthly income
5. Fund your Life Insurance
One or two of these categories may change depending upon your personal situation. After these items have been funded the remaining balance is what I refer to as your lifestyle fund. This remaining amount is what a person or family has left to cover their living expenses. Below is an example:
Person “A” earns $2000/month and after they cover the 5 prerequisites they have $1200.00 remaining. It is from this amount that a person begins to fund their lifestyle. The golden rule is to never allow any future purchase to interrupt these 5 financial requisites. Every human being should purpose to fund their financial future before they fund their lifestyle.
Elder Raines
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