Putting Money Away

so, now that we know the cash flow patterns of the poor, middle class, and rich, we should begin to branch out this knowledge into the realm of practical application. How does one apply the rich pattern to him or herself?

There are a number of habits to help us do this; the first is to pay yourself first. You have to pay yourself before anyone else. This means that you should put money away before you spend it on anything else. Putting money away is crucial, critical, and it must be done. If you spend all your money, rather than putting it away for yourself, then you really didn't get paid. Make sure that you are the one who gets paid.

The Poor's Cashflow

The poor, the middle class, and the rich all have different ways which their cash flows. The poor and middle class are really of the same class; they are, for simplicity's sake, poor. However, because there are some minor differences, we will look at them individually. Let's take a look at the poor first.

The poor have an income, but it is usually small. They work hard, and they earn money; sometimes, this money is a considerable amount. However, they spend their money very unwisely. They spend it all, or at least most of it. This leads to them being poor and never getting ahead. They have no discipline at all with their money. They do not save, and they pay for it dearly by being poor; however, they are often ignorant to this process.