I had the privilege of speaking at a Financial Planning Seminar organised by PYF International and I spoke on the topic, 'Making Money Work For You And Not You Working For Money'.
PYF International is a well organised platform that has different thrifts of payments such as the daily, weekly, monthly, bi-monthly and other thrifts to accommodate the saving capacities or abilities of every individual/member and payment of your savings is received when it is mature or due for payment. To know more about this platform, you can drop your comments below this article or reach out to the initiator of the platform through his email address amchochi@gmail.com.
Building a financial safety net to catch us helps us bounce back especially in this difficult moment of our economy and PYF International is one financial safety net to all and sundry to always help us bounce back with our finances. But in order to achieve this, we need to trust in our ability to generate wealth for ourselves with the right mindset or mentality.
The acronym PYF simply means Pay Yourself First. A reversed budgeting system different from the conventional system of budgeting that we do. In the conventional budgeting system, what we do first most of the time on our list of items, is to first of all settle debts, pay bills and deal with other expenses before we think of having or keeping something for ourselves - that is if anything will even be left for us to keep or save.
But in the reversed budgeting system, PYF, what we do first, is to keep a certain amount of money from our earnings for ourselves before we start dealing with expenses. This is to ensure your savings before anything else.
THREE SHORT STORIES ON PYF
Before I proceed, I would like give us three short stories on PYF - PAY YOURSELF FIRST
1. The first story is about two men - Robert and Kim Kiyosaki - who ventured into a business and decided to hire a book-keeper to track their finances for the sake of honesty and transparency.
In the process, the the book-keeper - a lady- discovered that all they did with their earnings was to pay bills upon bills with nothing to keep for themselves and so she drew their attention to it. To reverse the awful financial situation they were in, they decided to work with the financial rule or formula 10/10/10/70 to keep their finance in check. How this rule works will be explained later in this article.
2. The second story is about a man named Arkad who really wanted to be financially buoyant in his life and decided to make enquiries on how to generate wealth for himself. The money lender - Algamish - said to him, part of all that you earn is yours to keep. Meaning, you are not spend all your earnings but to ensure you keep some for yourself through savings.
As your employer pays you your salary, also pay yourself first from your earnings by keeping something for yourself. As customers pay you for your services and products, also keep part of that payment for yourself. Do not spend all your earnings.
The money lender, Algamish went further to tell Arkad to ensure that the children of his savings bring in more money for him, which I will also explain in the course of this article.
Arkad listen to the money lender, and became the richest man in Babylon. If you have not read the book 'The Richest Man in Babylon', I will advise you do so as it is very very financially educative.
3. The third story is about me in respect to PYF International. I had moved to new place with running water in the apartment, an electricity meter attached to every apartment in the compound and of course a beautiful and serene compound with nothing to wake you abruptly from your sleep or distract you from your studies unlike my former place of abode which was a different scenario - the complete opposite.
But what does it entail to move into this new place with such amenities put in place? more expenses and higher rent payment with no increase in salary. But fortunately, I came across PYF International and got my rent ready three months before it was due. Through PYF International, we gain high level of financial discipline and delayed gratification.
In our next article for next week, we will be discussing what measures you can put in place to ensure you are Paying Yourself First from your earnings.
Quote for the day - "Financial freedom is available to those who learn about it and work for it." Robert Kiyosaki
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