The Power of Savings a.k.a. PYF and my first pot of Gold

While I was drafting my financial plan a year back, I was thinking very hard, very very hard, about how to achieve my first pot of gold, as a stepping stone for greater financial leverage.

After rounds of thoughts, something strucked. In the first book I'd read in Dec 05, Automatic Millionaire, a concept called Pay Yourself First (PYF) was introduced. It took me a while to digest what is PYF then. It's actually setting aside a part of your routine income for growing your wealth; Savings.

After 1 year of disciplined practice of PYF, enhanced with some other financial concepts, I'd cleared as many as 2 bank loans, which would takes up to 2009 to clear if i follow bank's installment plan. Saving on the interest cost, amounting to as much as more than $1,000. I even have spare cash for investments in the stock market.

It's not easy applying PYF. There were alot of mental and emotional resistance. It not my usually habit to have disciplined savings. I told myself, why not think big big but can start small small first? I did. I started saving 5% of my monthly income into a separate bank account (Interest rate higher than or equal to inflation rate), and more from my bonus. This was slowly raised to 10% and eventually, i am not at 20%. It takes me 1 year to achieve this.

I'd realised the Power of PYF.

It can make me debt free and achieve financial freedom in the shortest time possible. I can also use the funds set aside using PYF concept to invest and create greater wealth! However, this neither creates nor generates my first pot of gold.

I found my first pot of gold, in READING. By reading more, I'd realised that my thoughts expanded in both breadth and depth. Chinese has a saying, "You can find your golden house and royal jades in books."

I'd realised and applied PYF and found my first pot of gold. Have you?


Cheers!
Leroy

"When I Stop Learning, I Stop Living"