Money flows toward high-value uses, so plan before it arrives. If your income jumps $5,000, split it 50/50: $2,500 to investments, $2,500 to lifestyle. Have a portfolio profits plan ready before gains hit.
Money loves a plan. Money loves purpose. Money loves organization. There is an energy attached to money, and money will tend to flow from where it is of low value to places of high value. And if you haven't given your money a purpose and a plan, then it doesn't feel valued. And so it's just going to disappear and move on. So ahead of time, when we create some profit, you want to have a plan ahead of time so that money already has a purpose. So if you know that your income is going to be going from $50,000 to $55,000, it's okay to increase your lifestyle. Absolutely. It's not about living on baked beans and rice while trying to build a portfolio. You want to enjoy life at the same time. Just don't be stupid. If you've got a $5,000 increase, 50% of that, $2,500, that goes straight towards investing. The other $2,500 goes towards increasing lifestyle because you want to reward yourself at the same time. And so as we start to get profits coming through our portfolio, we want to have a portfolio profits plan in place already. So it's already planned ahead of time. So you're not sitting there thinking, done deal, sorted.
