Rebates on the way!!

Here it comes….The lecture on what to do with your money when you get a gift. Personally, I have a strong belief that there is a very specific breakdown on how you should take care of income. Whether the income comes from your paychecks or from a free rebate from the government, here is how income should be broken down.

1. Give at least 10% to tithing or if you don’t go to church, donate it to a worthy charity. For Christians, this type of action shows God how strong your faith is toward him. God promises blessings back 10 fold for being faithful in your giving. For non-believers, this act of giving us called the “Law of Reciprocity”. A principle of what goes around, comes around. Try it…See what happens!

2. Give yourself 10% to treat yourself. This is the principle of what the rich call “Paying yourself first”. What is left after the Giving and the Paying yourself then becomes more flexible.

3. Put 10% to long term savings. This is your retirement fund.

4. Put 20% toward, something you can invest in and take risks worth. I recommend breaking this down into half. put half of it into account to spend on the risky investment and the other half on educating yourself. Take seminars or buy books and tapes on the subject you want to invest in. This will help to minimize your risk.

5. Lastly, you should be left with the last 50% of the money you want to break down. Hopefully its enough to now pay bills with and survive on for everyday expenses. If it’s not, you have 2 big decisions to make. First, make more money. Second cut the regular expenses you have down so you can do 50% of your income to survive on.

This message above is a difficult thing to do for most people, but if its a habit created early by your kids, 2 great things happen. First, they will have secured their future and those of your future generations, and second, they will have learned to live within their means and be smart with their money.

So take that free rebate and show them how you and the family will break it down to where it makes sense!