I used to tell myself that I’d pay off my last remaining credit card as soon as I got a steady income, then I got a steady income and I told myself I’d pay off my credit card when I increased my income.
We tell ourselves that we’ll start saving when we get a higher income or we’ll finally start that business when we take an entrepreneurship course.
We’re waiting for that perfect moment when the stars align and everything works in our favour and we can finally live our destiny.
i. Save and invest 10% of your gross salary for retirement
Pay 10% of your gross income towards your retirement plan. It’s tax deductible, which decreases the amount of tax you pay on your salary.
ii. Create a budget
List all your income and expenses and subtract your income from your expenses. Save 10% of your net income in a savings account for emergencies. Open up a savings account and make sure you save 10% of your net income every month. This is your emergency fund.
Note: when you create your budget you should align your expenditure with your vision for your future. Eg: if your goal is to move up the career ladder, then part of your budget should be allocated to studies.