Money Vehicle is on a mission to empower people to start a financial plan and establish some goals. With this, we must continue to find ways to take our ongoing education and find ways for practical application.
As a former professional athlete, I appreciate the fact that there is no better way to repeatedly find success than through creating positive habits. Actions that will become a part of a process, become part of a plan. In our curriculum, we outline “5 Money Buckets” — the five choices we will have to make with each dollar we earn. But once again, this knowledge is meaningless unless you put it to use.
Enter the “5 Monthly Habits” you need to begin incorporating into your plan. As each month passes, we will have five days to take action! Over time, these actions will become our money habits. Here are the five habits, and when to implement them during each month:
- On the 1st day of the month: Future Choice. We must begin each month by paying our Future Self. This action takes place as the month begins, and we courage you to start by “making a dollar and saving a dime,” or dedicating 10% of your earnings. Either save it, or invest it.
- On the 8th day of the month: Past Choice. Having our financial commitments already taken care of is where our habits truly shine. On the 8th of the month, we begin to automate — or “auto-8” — the money that has already been spent before the month begins, such as paying off debt or bills. What is a past choice you can automatically set?
- On the 14th day of the month: Compassion Choice. Where does our long-term financial fulfillment come from? Our compass choice. This is why, on the 14th, we will dedicate 1% of our earnings to someone else. Finding a person, place, or cause outside of ourselves to support, like a charity.
- On the 25th day of the month: Society Choice. We all must appreciate belonging to an amazing society and with that, we must support our Society Choice. On the 25th of each month, we need to remember that around a quarter or more of our paycheck will go to taxes. If you’re self-employed, then that money won’t be deducted automatically — you’ll need to send it to the IRS yourself!
- On the Last day of the month: Present Choice. Last but not least, we must not forget that the present is a gift. When you employ your paycheck and assure that you are using it to its fullest, you get to reward yourself with dollars designated to right now. Treat yourself, guilt-free, at the end of each month. Just don’t go overboard!
Money is meant to buy things. And perhaps the greatest thing money can buy is independence! That’s the ability to look at your lifestyle and say, “this is in my control.” Setting up a system in which you know that each dollar you earn is working to achieve that independence is essential.
Now you know the five habits, how will you begin to EMPLOY YOUR PAYCHECK!?
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