This advise was broadcast on the news this morning while I was watching a piece about Christmas spending, yet it might equally apply to Amway as well as other businesses.
It is a rare blog post in which I do not curse out my upline. This is a touch off topic, but given that it is the Christmas season, it does seem appropriate for this time of year.
I despise hearing stories of people trying to budget for Christmas, especially when the holiday is just 2 weeks away and it's pretty much a lost cause for the majority of people. According to one financial expert who was questioned, you should set aside 1.5 percent of your gross income for Christmas. This might include spending money on gifts, preparing additional meals, and any other expenditures that occur at this time of year. He stated that if the annual income is $50,000, then a budget of $750 is required. He also stated that one should save first and spend later, but then completely skipped over this and went on to state that one should only spend cash around Christmas. As previously stated, this suggestion may come a bit too late for some folks who are rushing to pull out their credit cards just to be disappointed when their January bill arrives in the mail.
Years ago, I came across an article that discussed how to figure out how much money you should spend on Christmas. Every month, divide that amount by 12 and set aside the money in a savings account. You'll have the money in your pocket by the time the holiday shopping season begins. This is sound advice. Every month, Ambot and I put $80 in an envelope and keep it there. Once October or November arrive, we will have enough money to cover the rest of the year's expenditures in full. So, who has a strong mathematical background? By the time we begin our Christmas shopping, we will have $960 in an envelope in our possession. When we originally started, we chipped in $60 each month to cover our expenses. Ambot suggested today that we raise the amount to $100 every month for the following year.
As a saver, I am at odds with Ambot, who is a spender, which is what landed him in difficulty with the Amway cult and contributed to the scam. He used his credit card for everything, even purchasing dinners for his valuable upline, in the mistaken belief that he was tracking all of his business spending with a credit card, completely oblivious to the fact that he would eventually have to pay it back.
Making use of the same philosophy, figure out how much money you spend on Amway each month and put that money aside in cash rather than using a credit card to pay for it. Actually, because it is an online purchase, you will almost always be required to use a credit card. For example, cash that has been set aside to pay off the credit card debt immediately. Consider spending at least $300 per month on Amway products in order to qualify for a bonus check worth slightly less than $10. Ambot desired to increase his earnings. The smallest amount he ever spent in a month was $468 dollars. The majority of the months saw spending between $950 and $1050 on Amway products, with the highest spending occurring two months after joining at $1,358.
This is the part where I want to scream! My food budget is $600, which includes both groceries and eating out, which accounts for approximately half of my total spending. What the fuck was he spending his money on? Okay, I've previously mentioned my excessive consumption of XS Energy Drinks. How can this possible compare to the Amway items that we purchase on a regular basis when we go food shopping? When it comes to grocery shopping, I've never come close.
Assuming you're buying CDs on the cheap, you'll need to budget an additional $20 every month, but the sky's the limit. The most CDs Ambot purchased in a single month was $150, however the majority of the time he spent less than $40 per month.
You must have a premier subscription to WWDB, which costs $49.95. If you're a "serious business builder," don't forget about Communikate, which costs $36.95 a month.
Monthly seminars with a variety of topics - tickets and parking are $70.
That's $476.90 a month just doing the bare minimum to obtain a bonus check from Amway worth less than $10 and establish yourself as a real business owner. As you progress through the levels, your spending will increase in accordance with the amount of available space on your credit card and your desire to impress your upline with your expenditures.
Every year, there are four big functions, each of which is held in a different state. Plan on spending at least $500 on transportation, meals, lodging, and tickets, with the possibility of spending more depending on your circumstances (such as how far you're travelling).
So, let's pretend we're putting money aside for Christmas and divide the total by twelve. Every month, you'll need to set aside approximately $700 (or more) in cash!
Yikes!
Is it possible that this could be a mortgage payment, anyone? Anybody think that money may be put to better use in equities or a 401k? So, how about a very large blowout for Christmas this year?
That is a significant amount of money to set aside each month for a firm with a failure rate of more than 99 percent.
“Save early, spend later,” is a piece of advise that I still like from the financial guru today.
Apply it to your Amway business before you spend all of your money on your credit card in order to impress your upper-level sponsor.
The key to stable financial footing and success over the long term is to save money first and spend it later.
The idea that one should "save first, spend later" may appear contradictory in today's society, which places a premium on quick pleasure and is dominated by materialism. Having this mindset, on the other hand, is a potent instrument for achieving both financial stability and long-term success in the long run. The path to a stable financial future is outlined in this article, which delves into the advantages of making saving a higher priority than spending in order to get one's financial house in order.
Creating a Safety Net:
Saving first involves putting aside a certain amount of money each month into a savings account or an emergency fund before spending money on non-essential items like entertainment or dining out. This strategy serves as a safety net in the event of unforeseen occurrences such as the loss of a job, a serious illness, or extensive repairs. You may prevent acquiring debt and reduce stress during hard times by maintaining a financial cushion, which enables you to handle uncertainties with confidence and allows you to avoid amassing debt.
Creating Financial Discipline:
Prioritizing saving instills financial discipline and self-control. It requires you to continually save aside a percentage of your money, regardless of any immediate demands or temptations that may come your way. When you make saving money a top priority, you cultivate sound money management practices that can provide the groundwork for prosperous long-term financial outcomes. This self-discipline extends beyond the act of saving alone and has the potential to favorably influence other aspects of your financial life, such as creating a budget, investing, and cutting back on things that aren't absolutely required.
Creating Wealth and Achieving Financial Goals Saving money early on paves the way for you to amass wealth over the course of time. You can develop a pool of assets that can be invested in various vehicles such as stocks, real estate, or retirement accounts if you consistently save some of your income. This can be accomplished by setting aside a portion of your salary. These investments produce returns and increase your wealth, putting you on the path to attaining long-term financial goals such as retiring comfortably, buying a home, or paying for your children's school.
When you save money first, you can reduce the amount of debt you have to pay off as well as the interest payments that come along with it. If you make saving money a top priority, you won't have to rely as much on credit cards, loans, or any other forms of debt to cover your day-to-day costs. You will not only save money on interest payments but also enhance your creditworthiness, which will allow you to take advantage of cheaper interest rates and greater financial prospects in the future. Saving money on interest payments is just one benefit of reducing debt.
Conquering the Dangers of Lifestyle Inflation One of the difficulties that a lot of people have to deal with is the urge to increase their spending as their income grows. This issue, which is sometimes referred to as lifestyle inflation, can slow down financial development and make it more difficult to properly save money. By adopting the mentality of "save first, spend later," you can intentionally combat the effects of lifestyle inflation and ensure that your savings will keep pace with any increases in income you may experience. If you take this strategy, rather than giving in to excessive spending habits, you will be able to keep your finances in check and distribute your resources in an intelligent manner.
Methods for Putting the "Save First, Spend Later" Strategy Into Action:
Set up automated transfers to a separate savings account or investment vehicle to ensure that a percentage of your income is continuously saved before you have the opportunity to spend it. a. Automate Your Savings Set up automatic transfers to a separate savings account or investment vehicle.
b. Create a realistic budget that includes a savings category as a non-negotiable item and approach it as an essential payment rather than a decision you can make if you want to save money.
b. Give Yourself the Highest Priority:
You should make it a priority to save a certain percentage or quantity of any income you get before allocating any of the funds to pay for other expenses.
d. Keep Tabs on Your Expenses:
Keep an eye on your spending patterns and see where you can make reductions so that you can put more money away in savings.
In spite of the fact that the dominant culture frequently encourages quick consumption and spending, adopting the mentality of "save first, spend later" is an essential step toward achieving financial stability and success over the long term. You can put yourself on the path to wealth generation, debt reduction, and overall financial well-being by establishing a safety net, exercising financial discipline, and working towards the achievement of financial goals. Adopt the mentality of saving money first, and you'll be amazed at how much more certain and hopeful your financial future becomes.
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