What do I mean by that, simply whatever you earn per month you take out a minimum of 10% and put it into your savings account or your investment account; you live and pay your bills with what you have left. You PAY YOURSELF FIRST



I know, I know, I can hear you say "How can I do that, it's taking me all my time to keep my head above water as it is".

Well what you must do is sit down and have an honest look at what you are spending your money on.

Put a basic profit and loss sheet together and at this stage it does not need to be complicated. Very few people do this.

The budget plan poor people work to, works like this.

Go out and earn as much money as you can, pay the bills, spend the rest, because that is how much it costs to live. This plan and way of working will only keep you working hand to mouth and keep you on the treadmill until you die.

So pick up the pen and paper and let's have a look.

On the left-hand side of the paper write down your monthly income. That is everything that is coming into the household, your salary, your spouse's salary and any other form of income.

I don't want to hear "I don't know it varies every month" Work a monthly average out or work to your basic rate.

On the right-hand side of the paper write down everything that you are paying out per month, make a full list.

I don't want to hear "I don't know some things we pay for quarterly" work out how much you are paying a year and divide it by twelve. O.K. To be solvent your left hand total should be higher than your right hand total.

If you're right hand total is higher than your left hand total subtract the left hand from the right hand total and this will show you how much you are running in to debt each month.

For some this little exercise is an eye opener of how our spending can get out of control and slip through the net if not kept a check on. But let's go back to this paying your self first.

Wealth can only be created by not consuming, so we need to stop spending and create the habit of saving. Therefore you need to look at your right hand column to see where you can stop consuming.

To be successful at this you must have an honest desire to create your own wealth and the determination and discipline to change your lifestyle so it's imperative you know what you want and why you are doing this.

Be honest with yourself, where can you cut back?

On a £20,000 per annum net income you will need to be paying yourself £2,000 per year. That is £166.67 per month.

Where is that going to come from? So let's look at some of the most common areas of our uncontrolled consumerism.

If you spend £5 a day on cigarettes (only poor people smoke) that's £35 a week, or £140 a month.

If you drink on average of two pints of beer a day at an average cost of £2.60 a pint this is £36.40 a week or £145.60 a month.

Two bottles of wine a week could cost on average £12 a week or £48 a month.

Have an honest look at fuel consumption for your vehicle, could you not use it so much, could you walk more, this would keep you healthier, could you make a deal with someone to share the costs of running too and from work.

Have a look at the food bill, can you cut costs or get better value for your money by not buying conveniences, sweets and junk food.

Take a look at your utilities; switch off the lights and electronic equipment when on standby, cut back on water and gas usage.

Nowadays you won't be looked at as being a miser or skinflint but a global friendly eco warrior.

What I am saying here and I think you will agree, with a little bit of thought and effort you can change your habits and lifestyle in small ways to find that 10% you need to start the ball rolling.

Take an honest look at the No 1 Rule of Wealth Creation "Pay Yourself First" and you will soon see how to turn these small gains into massive wealth creation.