THE PRINCIPLES OF WEALTH (Part 4)

The Millionaire Formula goes like this:
1) 10% of your income goes to Tithing.  It is very important that you give 10% of your income to your partner on the road to success-God.  Your business is to give that which belongs to Him and not being bothered about what is done with it, afterall, you've got 90% to yourself!  Some folks prefer to give it directly to the poor or to support the less priviledge, whatever, but make sure you give out 10 % out of your income to God...it is one of the secrets to increase!

2) 30% of your income goes to paying your living expenses.  It is important that 30% of your monthly income goes to your upkeep.  That means, budgetting is a vital part of your life henceforth! Any expenses that goes above this mark should be shifted into next month's budget,see friends, believe me, you cannot acquire everything at once.  Trying to get everything done at once is one of the reasons for failure, dissappointments and debts--heavy debts!  Like one of my fathers would say, "anything I don't have now in my life, I am not qualified for it yet ".  I think that's a sound financial prudency advice.  You've got to be frugal and avoid instant gratification of your wants or needs.  Think, plan and budget for every expenses, you should have a budget for your expenses for the next 90 days!  Avoid impulse buying!

3) 30% of your income goes to fun and adventure.  Yeah, you heard me right, fun and adventure, building financial wealth doesn't have to be a "save-and-die affair" .  Fun and adventure means you reward yourself today while saving and investing for the future.  It has been discovered that people would gladly save for tomorrow if they know they can enjoy some comfort of life today and also save and invest for tomorrow.  It's like this, you enjoy yourself today and put some money away into your savings and investment plan for the tomorrow (the future).  This is important because, you would have been enjoying the fruits of your labour today while building for tomorrow, which a saying goes thus "today is the only guarantee we have, tomorrow may never come".  God will protect us to see our tomorrow, Amen!  Make sure you give equal amount to fun and adventure as you give to savings and investing, it is one vital principle. It serves as enjoying equal amount of what you are putting away!

4) 30% of your income goes to savings and investing.  This percentage should be shared equally between savings and investing.  Decide on the amount of savings you want to be having monthly as a buffer against emergencies and work on keeping away consistently that same amount.  Look for viable investment outlets to put the other part of the 30% , you can invest in instruments like shares, mutual funds,use your stock broker for speculative trading on the stock market, real estates etc.  Get information on these areas of investing because investing is really about how much you know.  You have to invest in your personal development in terms of financial education.  Your goal is to become a professional investor and not just a passive investor that commits your money into the hands of financial experts, attend seminars,read books, listen to tapes and build your library on financial educating materials.  Jim Rohn  said "income rearly exceeds personal development". I agree.  The amount of income you would be able to generate has alot to do with your level of personal development!

In concluding this for now, you must do what 90% of people who read this financial information would not do, TAKE ACTION! ACT! Start with the level income you have and your expenses and work towards making them align with these target percentages! It would work for you, it has worked for others!

Please visit http://www.ronhenley.com/ for full dose of  The Millionaire Formula. Take Charge!

Recommended Reading: If You Want To GET RICH You've Got To BREAK THE LAW! ( Ron Henley)