According to the book “Richest Man in Babylon by George S” there is a principle to manage your income. If we save money in the present , money will save you in future. Few to take noteof
—
1. Part of all you earn is yours to keep (Pay yourself first 1/10—You are generating that income thus you should keep 10% of your total income with you forever, otherwise there is no fun earning those)
2. Take advice only from those who are experienced in the matter (We believe easily in any information which is easily available and never put effort to get the right advice or take informed decision)
3. Don’t confuse your desire with your needs (Control expense proportion to your income, usually all dreams become necessary when we earn our own money and fail to differentiate )
4. Ensure your money is working for you (As to earn them you have already worked for money now is Money's time to work for you)
5. Seek to learn more & become wiser (Which will help you financially strong )— The more knowledge we have more money will work to get more money)
In short
1/10—is your money keep it with you only, 10%
2/10 pay to creditors or spent on your desire, 20%
7/10 is for you and your family. 70%
If you also read the book by the name “Rich Dad Poor Dad—by Robert T Kiyosaki” is one of the books recommended by many successful people, I am mentioning a few names whom you must
know—Sandeep Maheshwari, and Ankur Warikoo—Who read this book in 1999–2000. Just to summarize the knowledge from the book, what you will grab is that Rich people do not work for money but money works for them. As per Robert Majority of the people stuck in the “Rat Race” - do well in their school, College and after getting a nice job they get married then they buy a house and a car then they invest their whole life's salary to pay their loans
