Number one Rule of Success

Number one rule as you have heard, a thousand times is pay yourself first. Pay yourself first which means to save, 10 to 20 percent of your income.

In order to qualify for big things, you have got to do little things. If you want to be the championships, you have got to fight. You have got to compete in the smaller competitions. So number one, pay yourself first, ten to 20 percent going to be shot as if you are looking.

Now, here is the great challenge, is most people cannot do this. Most people say, Geez, 10 to 20 percent. So what I say is, this is start with 1%, start with 1% of your income. If you make $5000 a month that means you save $50 a month. You open up a separate bank account. And just a religiously as if you are going to be shot if you do not do it, y8u put $50 a month in that bank account, one crummy percent.

Now, simultaneously, whenever you get any extra money or something you did not expect at a bonus, IRS refund or sometime else, just it into that account. This becomes your financial accumulation account.

When you become comfortable saving 1% a month, then you move it to 2% a month and then you move it to 3% a month. And you do this until you become comfortable and it is very much life changing the direction of a great ocean liner as this ocean liner begins to change and change direction is very subtle, one degree at a time. But what you are doing is you are bringing about a fundamental subconscious change from spending everything you make to not spending everything you make.

The rule for financial success has been the same for 50 years. Spend less than you earn. If you can do this, you can achieve financial independence. And pretty soon, within a year or two, you will have it up to 10 to 20 percent.

When you save money carefully like this, this money begins to develop an energy.  It begins to become a force field. It begins to develop an energy of attraction. And there is a law on the universe called the law of accumulation, the more you accumulate. And the more you have here, the more money you attract into your life. And what happens is you get little bits of money from here and a bonus from then and unexpected money from there. You save something from here. Instead of blowing it which we normally do, you put it into this account. And each penny dollar you put into the account increases the energy. It is almost like this is uranium and it is increasing the energy power and it starts to draw more money. It became life a free field of energy.

It changed the dynamics of the universe. Because that money just sat there and it attracts money, opportunities and ideas. This is such a powerful principle. So your job is to pay yourself first. And start off by saving 1% per year.

Now here is the second principle and it is called the wedge strategy for achieving wealth is that is life, this is what happens. You have heard the old Parkinson’s law that express rise to meet income. In other words, no matter how much you make, you spend that amount well. So this is what will happen over the course of your lifetime, if you keep engaging in additional knowledge and skill. You will learn more, you will earn more, you will be paid more, you will increase the slope on your curve, you will move ahead faster but if you are not careful, you will burn it all.

Most wealth people are two months away from homelessness if their income was cut off such as doctors, layers, architects, engineers and etc. if these people’s income was cut off for nay period of time within two months, they will be foreclose on because they are spending everything they have and a little bit more besides.

So this is your income and this is time. Now what happens is the natural tendency is for our expenses. This is our income and these are expenses or expenses just go like this. No matter what happens, we just cannot get ahead because we keep raising our expenditures like jacking them up and we never get a gap.

If I were to ask you to save from your income today, most people have a hard time doing it because every penny, you have is committed. You figure out what your income is today. And as you use the techniques here, you are going to become more skilled at making money. So from now on, save 50% of the increase and allow your standard of living to go up by 50%. You should start easily enough and you save half of your increase, you will become wealthy because this amount of money will compound. So this is the starting point of getting out of debts and getting your finances under control. If you cannot do this, you cannot do anything. If you cannot save a nickel, you cannot make a million dollars. If you will be hard on yourself, life will be easy on yourself, life is going to be very hard on you. And the starting point is with the next dollar.