Formula For Growing Your Wealth

Photo by Beau Lark

What do you usually do after you receive your income?

Do you save and invest your money first then use the remaining to pay off your debts, bills and other responsibilities? Or do you spend it first on paying off your debts, bills and other responsibilities and then save and invest the rest?

If you do the latter, then it will be hard for you to increase your wealth. Why you ask? It's because, more often than not, there is rarely any money left for savings and investment after spending it on paying off debts, bills and other responsibilities. So without any money left for savings and investment, there is no way you could increase your wealth, even if you are earning a big amount of money.

What should you do then?

You need to follow this formula

INCOME - TITHE - SAVINGS/INVESTMENTS = EXPENSE

Once you receive your income you need to allot your money in this way in order for you to increase your wealth. You need to allot 10% for tithes 20% for savings/investments and the 70% is the one you use for your responsibilities. In short, you pay God first, then you pay yourself, then you use the rest to pay everyone else.

100% - 10% - 20% = 70%

Tithing is a way for you to say thank you to God for the blessing that He has given you (see post on Tithing). That's why it's important that you pay Him first. Then you pay yourself second. Because if you don't allot money for yourself, no one else will do it for you. You can't work forever, so it's important that you also take care of yourself and your future. So when you retire, you won't have to be a burden to others because you'll have your own fund to spend on.

Then you use the rest to pay everyone else. Your debts, your bills and all your other responsibilities. It will be hard at first, because 70% might not be enough to cover everything. The good thing though, is that this will teach you to monitor your expenses and become a wise spender. Something that will help you in the long run.

So if you want to grow your wealth, just follow this simple formula and watch your personal wealth grow continuously.