I recently started a Transcendental Mediation class with my daughter. Yes, meditation and it is cool. As I’m writing this I am on day three of my practice. I realized last night during our class that this isn’t a quick fix for life's problems. And it wasn't designed to be. Rather it is a process that has a targeted result. The key word is process. A process that is repeated daily with no interruptions.
I have found with any success in life, process is key. Defined steps that will take you to a destination. Where this process is most absent is in personal finances. Being the person I am and what I was created to do, I’m going to give you a process to creating a stable financial future.
King of Cash
The following is a quick and easy step-by-step guide to help create personal and business profit.
Step 1) Income: What is your gross income? Write it down.
Step 2) Profit: What percentage of your gross income can be designated to be profit? Pick a percentage. One percent is fine - fifty percent is great. Pick a number.
Step 3) Profit Jar: Take a jar of some sort and put a label on it that says. "Profit Jar. Hands Off." Put this jar somewhere everyone in the family can see it.
Step 4) Profit Put Away: Multiply your profit percentage by your income. This is the amount you will put in your Profit Jar each paycheck.
- Per paycheck income - $1500.00
- Profit per paycheck - 5%
- Multiply $1500 by 5% = $75.00
- Profit jar receives $75.00 each paycheck
After 24 paychecks, you will have $1800.00 in the jar. As this amount grows, review the profit percentage amount you are putting in the jar. Can you do more?
Step 5) Expense: The amount left after subtracting your profit from your income is what is designated to expenses and cash reserves.
Paying yourself first is a process. Like meditation, you have to do it every day. No excuses. Building this routine can help create financial wealth. Once you start this process, let me know if you have any questions about the next steps. Send me an email at firstname.lastname@example.org. I am always happy to help.