If you understand the previous principle, this one makes sense.
Many
people plan bonuses into their lifestyle. That is a quick way to get into
financial trouble. Remember that bonuses aren’t guaranteed income.
They change
year to year, and sometimes they don’t come at all. If this happens, you can end
up in a bad financial state.
So, treat your bonus like a pleasant surprise at the end of
the year (or whenever you get it).
Take a little bit of it (10 percent or less)
and buy something you really want (not need!).
Take the other 90 percent and
save/invest it. Remember, you weren’t planning on getting any bonus, so it truly
is a bonus.
You should also apply this principle to any unexpected income
(like inheritances or tax refunds).
Use unexpected income as an opportunity to
get ahead financially.
When you take the attitude that it is found money, you
tend to waste it rather than use it wisely.
The last two principles should show you that there is a way
to enjoy the short-term and effectively plan for your long-term financial goals.
The key to doing this is not to get in debt.
Live below your means!
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