Re-reading Robert Kiyosaki’s book How to Increase Your Financial Q, the episode where Robert describes how he applied the Pay Yourself First rule in practice seemed very interesting.
The point is this – let’s say you earn 1000 ye per month, and you need at least 1500 for life – to pay taxes, bills, loans and so on. But using the “Pay Yourself First" rule, They, along with Kim (Kim Kiyosaki, Robert’s wife), first set aside 30% interest – $ 300 and distributed it as follows
$1,100 in savings.
3,100 dollars for charity or a donation to the church – and they spent all the other 700 dollars, although they needed 1,500 to live.
So, in order to distribute the money, they hired an accountant and she was simply shocked that Robert in the first place demanded that she distribute the money in this way according to the “Pay yourself first” system, and not pay the bills first, on a loan, taxes … and even wanted to quit, considering Robert crazy.
Because if the bills were not paid, claims and threats from the tax authorities, banks, and various services immediately began. Everyone demanded that their bills be paid first. Robert Kiyosaki perceived all these raids as a motivation to look for ways to earn as much money as possible, and not be scared at the first threats from various services. This rule subsequently made Robert rich, although of course at first it was very difficult to endure pressure and control himself.
A very interesting example. What do you think? To be honest, I don’t even know if I could follow the same rule like this. Now I can distribute all the money according to such a system, since the expenses are minimal, but if after deducting 30 percent there was less than what is necessary for life, then I don’t even know how I would act.
I would like to read your opinion on this matter, and discuss this example from Kiyosaki’s book "How to increase your financial Q" have you experienced this in your life? Do you use this “pay yourself first” rule? Do you save 30 percent? How do you distribute your earned money?