This is a sad reality that leads to desperation and bad decisions. Imagine having a zero account balance with 15 days to the next pay check - that feeling is one of pain and perhaps regret. When we receive that pay check, we shouldnt dismiss the feelings we had 15 days prior. We need keep that memory in our brains and find ways to make our money go further.

We have eight rules that if you live by them - get you on the road to financial success. They are simple, and they work, but theyre not necessarily easy to put into practice. Thats why only a few of us are wealthy.

RULE 1

Save For The Future First As Soon Ss You Get Paid.

This is called paying yourself first. Save first, spend later. Set up a savings account or a money market fund, and move some money into it as soon as you get paid. The concept is considered the Golden Principle among wealthy people and forming the habit is more important than the amount you are putting away.

As your salary hits your account, the whole world tries to get you to spend every last thebe. If you spend first intending to save whatever is left, you will either run out of money or run out of motivation by the end of the month.

When you prioritise saving, youre telling yourself that your future success is an important thing to you. Getting in the savings habit has a positive psychological impact - you are motivated to make sound financial decisions. Saving for your future first then becomes second nature.

A Part Of All You Earn Is Yours To Keep

George S Clason - author of The Richest Man in Babylon

You get up every morning, do your best in your employment or business and get paid monthly. You deserve to keep a portion of your hard-earned money and that should be your priority. Theres a perception in Africa that putting yourself first means you are selfish. This makes putting the principle into practice difficult. Thinking about saving for yourself first can ignite guilt feelings and emotions thus deterring you from actually saving.

The other psychological aspect preventing most of us from saving first is instant gratification. When you receive your salary, your present is all that matters and your future is the last thing in your mind. The satisfaction of spending it all gives you a rush of euphoria. Its only when you come down from that high you then think of saving. However by that time, your account balance looks pitiful and you have no motivation.

You need to control your money - not the other way around.

It is important to fight

against the guilt, temptation and procrastination in order to have power over your money.

Paying yourself first is actually very empowering and beneficial as it allows you to be liquid, and pay cash for things. That saves you more money and gives you bargaining power!

Tips For This Rule:

a) Automate the process

Having a stop order that immediately transfers 10% of your salary from your current account to your savings account is simple. Make the decision now and then the action by the stop order will keep that decision going. That way you wont back out of it or change your mind.

b) Put your saving contribution in your Monthly Budget

List the money you put for saving under your expenditures. This tricks your brain to see saving as one of your compulsory payments such as rent, utilities etc.

By setting a portion of your income as your first expense, youre able to save before you are tempted into spending it all.

c) Focus on what you are saving for

Have a goal in mind when you are saving. Whatever the goal may be, you must WANT that goal hard enough to keep on saving. If you dont have a goal, you are far less likely to continue paying yourself first.

d) As your income increases, increase the saving

Quite often, when we get promoted and receive a salary increase, we first think of how to improve our lifestyle.

By increasing the monthly saving contribution at the same rate your monthly income increases, it gives momentum to building your wealth and really gets the snowball rolling.

Final Review

Ultimately, you are the one in charge of your financial present and financial future.

When youre making financial decisions, envisage the Future-You - still YOU, but in 10 or 20 years time.

James Fern - Certified Financial Planner. Sometimes we think that saving is depriving ourselves. We need to realise that we are still going to spend that money - its just that our future-self is going to be doing the spending. The Pay Yourself First principle is simple, but it may not be easy. One needs to actively change their mindset or even resort to mind tricks to get into the habit. For the readers already implementing this principle, I commend you. You are on the right path. If you have not, I urge you to at least try.

Money is such an amazing teacher. What you choose to do with your money shows whether you are truly powerful or powerless

Suze Orman - Financial Guru

Catch Rule 2 of Personal Financial Success next week.

* Vanessa Mphathi is a Financial Adviser with S.C.I. Group (Pty) Ltd. S.C.I. offer Personal Financial Planning, Investment Advice and Wealth Management for individuals and companies. Contact 3180111 or advice@scifinancial.com

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Eight Rules to Personal Financial Success - Mmegi Online