How to Keep the Money You Earn

Personal wealth building basics start with getting more value out of what you already have.

Do you ever feel like you’re putting money into a purse (or wallet) that has holes in it? If so, you’ve probably wished for an increase in income more than once. However, what if instead you could keep more of what you’re earning?

As you can imagine, accomplishing this first would help you be confident that earning more money will be a positive experience instead of just having more to lose.

Here are some personal wealth building habits that will help you keep more of the money that you’re already earning…

Personal Wealth Building Starts With Awareness

Getting control of the money you’re already making and getting the most value out of it starts with awareness. For one month, do nothing but keep track of your income and your outgo. Track everything from the money that you pay for your mortgage to the money that you spend on coffee every morning. Control begins with awareness, and the best way to become aware of your current financial situation is to get a clear picture of your life in front of you on paper based on a month of your spending habits.

Apply the Four Bucket Personal Finance System

The four bucket personal finance system is a simple system for reprioritizing your spending according to what will add value to your life and maximize the income you already have. With this system, you organize your spending according to four categories:

1. Investing: 10% or more of your monthly spending.
2. Expenses: 70% or less of your monthly spending.
3. Cash Reserves: 10% or more of your monthly spending.
4. Giving: 10% or more of your monthly spending.

Investing would be money you’re spending on increasing personal wealth or building a dream (such as starting your own business). Expenses are the things which you need to survive, your standard monthly bills. Cash reserves are the money that you’re setting aside for planned purchases or saving for emergencies. Finally, giving is charitable contributions are the final 10% of your income.

The order and percentage of these four buckets is key, because it helps you to make investing a priority. Wealth people always make investing a priority, and the more you do this, the more value you’ll get out of what you already have.

So get started with these simple personal wealth building habits right now. Within a year, you’ll be well on your way to creating financial freedom.

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