Prioritize Your Financial Well-Being
Many of us find ourselves trapped in a relentless trade-off, exchanging our precious time for monetary gain. It’s akin to being a hamster on an endless wheel, expending energy without making headway toward our financial aspirations. Deep down, we recognize that relying solely on earnings won’t lead us to financial freedom, yet we struggle to break free from this cycle.
To escape this never-ending loop, it’s essential to make a pivotal financial decision. You must firmly establish that a portion of your earnings belongs to you and your family, off-limits to anyone else, be it Michael Kors or Mercedes-Benz.
Dedicate a specific percentage of your income to your future, before allocating funds for any other expenses. This is what we call the FSP ratio, short for Financial Self-Preservation ratio. The exact percentage is a personal choice, but for meaningful progress, aim for a minimum of 10%. If 10% appears unattainable at the moment, start lower and incrementally raise it with each salary increase. Keep in mind that this constitutes your most critical investment, determining when you can break free from the hamster wheel.
Commit to this decision and take prompt action to leverage the power of compound interest. Embrace the fact that this is the percentage you will allocate to yourself first, regardless of circumstances. Automate this process to transform it into a tangible reality.