Monday, 14 January 2019
Give Yourself A Demotion
Go ahead. Give yourself a demotion.
Have less take-home pay and yet become wealthier. Huh? What the ... ?
OK, so sometimes we just have to outsmart the brain to get things achieved. Our minds are geared to seek comfort and normality and to avoid tension and growth. So instead of obeying those predispositions, let's leverage it. Here's how:
Demote Yourself To Get Ahead
1. Swipe 20% off your take home salary. Boom. Demoted.
2. Have your payroll siphon off 20% of your take home pay and funnel it into an investment account
3. Whip out your pencil, budgeting tool or trusty spreadsheet and figure out how to still live well on your newly demoted income. Hint: cognitive dissonance will awaken the mind to help you figure this out.
4. Let your 20% being funneled into an investment account grow and then every three months, take the balance and invest it wisely.
Even if you have retired or hit FI (Financial Independence) this is a worthwhile exercise to snap the mind into action and force renewed flows of earnings into ever-growing investments. The results can be overwhelmingly amazing. Even if investing scares you, then letting someone trustworthy do the investing for you can reap wonderful results too.
To help your mind document and plan how to live well on a newly demoted income - try this great budgeting tool HERE. Unlike many budgeting tools that make you grovel around in the past, this one is fully future focused , flexible, user friendly and will forecast your entire budget three years ahead so there are zero surprises. It comes with a phone app, lets you create multiple accounts, can be used for personal or business purposes, sends you alerts for upcoming items and it totally free for a month. At least try it for the month. I love it and am totally happy to recommend it (I rarely recommend products).
For the purposes of being fully open and honest, I do get a small percentage of any fully paid account that may get created after the initial free month - obviously I ain't gonna get rich off it!
I will be a bit busy for the rest of the month, so will not be posting here again till early Feb 2019
Take care - and always respect your future self :-)