Are You Good With Money?
Let me ask you a question. Are you good with money? This is a hard question for people to answer. So in this video I am going to give you a test. And the results of this test will tell you whether you are good with money. And I will tell you right now, most of you are going to fail this test. WATCH NOW
Twitter: https://twitter.com/FinanceWolves
Facebook: https://www.facebook.com/wolvesandfinance
Instagram: https://www.instagram.com/wolvesandfinance
VIDEO SUMMARY
The test we are going to take is simple. It is only one question. I want you to think about Pay Day. Now this might be when you receive your paycheck from your job. Or if you own a business, this could be when you receive income. Whenever you get paid, do you take a portion of that money and put it into savings? And not just any savings account, but some place where you are not planning on spending that money. It could be a savings account or investment or even paying off debt. Your savings is there to grow more money through interest, not to spend.
Now here is a follow up question for extra credit. What percentage of your paycheck do you save? This is very important. I want you to write this down somewhere, so you are very clear about your level of saving. Do you save 5%, 10%, or 50%? So many people do not understand this simple lesson. This is the answer to the question “Are you good with money?” Because how much you save out of every paycheck is the biggest determining factor of how much money you will make in your life. It does not matter how good you are at investing if you do not have money to invest in the first place. And you make that money through saving.
Most people in the United States are living paycheck to paycheck. They are not saving anything. And they are not going to become wealthy. You do not become wealthy through working for someone else. You become wealthy, by living beneath your means, and then putting that extra money into savings. As your savings grows, that money will start earning more money for you. Suddenly your savings becomes a second income source on top of your paycheck.
The reason saving is so hard, and why so few people do it, is because it requires self-discipline. You will have all this money in your bank account and you are deciding not to spend it. You are constantly bombarded by advertisements all day long for really cool things. Beautiful vacations, nice cars, new smart phones. You will have the money sitting in front of you to buy all these amazing things and you are deciding not to do it. You could pull out your bank card at any time and make those purchases and you are not going to do it. You are going to leave that money sitting in that savings account. Most people do not have the self-discipline to do that. It is self-discipline that makes the difference between someone who is good with money and someone who is not.
You have to understand that your savings account is the way to get to your dreams. Whatever dream you have for your life, savings is the way to get there. Savings gives you financial freedom. If you can save enough money, then eventually you can live off the interest and dividends from your savings. You can pursue whatever you want in life. That is why it is worth it to drive a cheaper car, live in a cheaper house, and not go on that expensive vacation. Because you are saving now so you can get to your dreams.
Let us go back to the question off how much you save. What was the percentage you wrote down? I know a lot of people are going to be upset with what I am about to say, but I am just going to tell you that it should be around 50%. When you get paid, take half of it and put it into savings. If you are serious about getting to your dreams, you should be setting aside 50% of your check to fund those dreams. I have even heard of people saving 80% of their check. These are super savers, and they are prioritizing getting to financial independence. Now I know some of you will say, that is impossible. But I bet that if you think long and hard about it, you can figure out a way to make it happen. I have been dealing with businesspeople a long time, and from my experience, the people who get rich are the people who make the sacrifices and figure out how to fund their dreams.
So to answer the question, “Are you good with money?” you do not have to look any further than how much you save. That is it. That is the determining factor, because it shows how self-disciplined you are on setting aside money to fund your dreams.
Leave a comment down below letting me know what you think!
If you find these videos helpful, please subscribe to my YouTube channel.
Neither Zach De Gregorio or Wolves and Finance shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.