How to Manage Your Paychecks Better

Let me tell you a story about one of my clients, let’s call her Mary. Mary is in a really good job, she’s in a corporate position and making good money but, before she became a client at Profit Jumpstarter, she was finding it hard to invest money each month.

What kept happening was that after she paid her bills she would spend the rest of her money on “things” that she didn’t necessarily need but just wanted to have because she could afford it. So she was always updating her wardrobe, from new clothes to new shoes, and buying stuff online. She was just doing the most trying to keep up with “the gram,” living that YOLO lifestyle. But even though Mary was living the life, buying nice things, traveling, and taking vacations, she didn’t feel fulfilled because she worried about what would happen if she lost her job. She didn’t have any nest egg and never had any emergency fund put aside. She was working good money but she didn’t have anything to show for it at the end of the day. 

Maybe you can relate to this as well, you went to school, got your degree, got a good job and you’re working your way up the corporate ladder and getting a good salary but at the end of the month when you get paid, you take care of your expenses, splurge because you work hard so you play hard and reward yourself but then you realize at the end of the month all of your money is gone and there is nothing to show for it. If anything happens out of the norm, you don’t have a plan, you don’t have a safety net.

This was what was happening to Mary so she sought me out. She saw our content on social media, inquired about us, and became a client. Immediately when I started working with her, the first thing I told her was that we needed to put some structure in place. She had the first part down, she was making the money and by the way, if she was not making good money I would have looked at some side hustles she could do, you can check out our free side hustle guide

So we focused on the second step, we talked about budgeting and I teach budgeting from budgeting with abundance concept so we created that budget using the 50/30/20 rule which is 50% income for needs, 30% for wants, and 20% for savings and investing.  After we put that structure in place, Mary immediately felt like a big weight was lifted off her shoulders because what I taught her to do was carve out the buckets. 

You can do all you want, live the most and do your thing, travel and spend but only in that 30%, 50% pays for your needs and your bills but you have to reserve 20%, carve it away to build that emergency fund and investments. We typically teach our clients to build between 3-6 months of expenses and put that into an emergency fund. What I find is that a lot of people are making good money but not putting any money aside to fund investing or they don’t know how much to put aside so they ignore it. This is where the 50/30/20 rule is very helpful in allocating funds for building up savings for investing. 

Investing that’s where the magic comes in because investing is the way to build wealth, the savings and the emergency fund alone are not going to cut it. You have to be investing, the investing strategy you’re going to use, however, now depends on the type of goals that you have and what you want your money to do in the future so the next step is to understand those goals and be very clear on what those goals are. That’s the work we did with Mary and with all our clients. After we sit them down and allocate the income we look at the specific goals our clients have and we quantify them. We go into a lot of detail and from that, we can come up with the appropriate investment strategy that will achieve those goals. 

When clients come into the Profit Jumpstarter community and they learn how to apply all that we teach, to their life. They learn about the right investment strategy to use to optimize and maximize their wealth and it makes a world of a difference because at the end of the day, it’s not how much you earn it’s how much you keep that’s what makes the difference. It’s about how much you are putting aside toward your future wealthy self because you can’t be wealthy if all you do is make the money to spend it and live the life today. We have to think about tomorrow so that even in tomorrow we can live in abundance doing all the things that are in our hearts’ desire. We can only do that if we invest.

These days Mary is out there very confident and very secure. Still doing the most, but she knows that in the future she is still going to be able to do the most because she did the work today to allocate the funds to her investments and that is the difference for her. 
Are you struggling with allocating the funds from your income in order to save, invest and build wealth for your future? We know a lot of people are struggling with that. If you are struggling with how to create structure after you get your money to ensure that you are set for the future, then you need to reach out to us at Profit jumpstarter so that you can become a client and we can get started on working together. Learn how to get into the right mindset to become a confident investor by joining our Wealth Bootcamp on April 20-21, 2023 register here and take the first step to becoming wealthy. The future is not promised, but you have to do your part to make sure that the future is as best as it can be for you.