The three piggy banks

Calhoun Times - - FRONT PAGE -

how to bud­get, I didn’t know how to save and I def­i­nitely didn’t know how to in­vest. That’s be­cause they re­ally didn’t teach on these sub­jects in school. Con­se­quently, most adults grow up with that same men­tal­ity and understanding of money. Case in point: I was sit­ting at din­ner with some old friends. By adult stan­dards, they live a suc­cess­ful life. They have a 3,000- square­foot house built in 2010, an in- ground pool, a newer car and lots of toys around the house. They also make well over six fig­ures — like I said, suc­cess­ful.

As we were eat­ing, they started telling Ash­ley and me about this startup com­pany they had the op­por­tu­nity to in­vest in. You could tell they thought this com­pany was go­ing to go big. They showed us some of the prod­uct the com­pany had al­ready pro­duced and even men­tioned that they could buy in for only $ 5,000.

Ex­cit­edly, Ash­ley and I asked when they were go­ing to do it. The wife’s next state­ment was re­veal­ing. She said, “Yeah right. Like we have an ex­tra $ 5,000 ly­ing around for us to in­vest with.”

They would have had the ex­tra funds had they known the strat­egy of the three piggy banks. The way this strat­egy works is you al­lot a por­tion of your pay­check to go into three cat­e­gories with each hav­ing its own “bank” or place of al­lot­ment.

The three cat­e­gories are tithing, sav­ing and in­vest­ing.

The amounts you pay into each bank is a per­sonal de­ci­sion, but make it stan­dard, and do it be­fore you pay any other bills. You want to get into the habit of pay­ing your­self first be­fore any­one else.

Let’s see how quickly this works. Sup­pose you make $ 100,000 a year, and you re­solve to de­posit 10 per­cent of that into each piggy bank — 10 per­cent for tithing, 10 per­cent for sav­ing and 10 per­cent for in­vest­ing. That would be $ 10,000 per piggy bank for a to­tal of $ 30,000 each year, and you could en­joy the re­main­ing $ 70,000.

What would you have ac­com­plished by the end of the first year?

You would’ve amassed more than a month’s in­come in your sav­ings ac­count — that’s huge. There’s a lot of com­fort in hav­ing a month’s worth of ex­penses at your fin­ger­tips. Next, you would’ve helped your con­gre­ga­tion or fa­vorite char­ity with a 10th of your in­come. This would’ve fed your soul as well as those in need around you.

Fi­nally, you would’ve put $ 10,000 into an in­vest­ment ac­count to be used to buy cap­i­tal as­sets. That money could be used to buy Lon­nie deals, as a down pay­ment on a rental house or even as the cap­i­tal needed to buy into a startup com­pany, all of which will grow your wealth. And that’s how money works.

Joe and Ash­ley English buy houses and mo­bile homes in North­west Ge­or­gia. For more in­for­ma­tion or to ask a ques­tion, go to www. cash­flowwith­joe. com or call Joe at 678986- 6813.

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