Pay Yourself First


pay_yourself
So you want to be Wealthy. You also want Financial Independence and even a very comfortable and fulfilling retirement. Well, I’ve got news for you. You can almost kiss those dreams goodbye from now if you don’t learn how to take care of yourself Financially before creditors, bill collectors and anyone else taking a deduction from your normal income. You need a disciplined approach. Like favored and best selling Author, David Bach says ‘You must make this saving automatic’. With Bank’s and Technology today, there is no excuse for not making your savings an automatic deduction before paying anyone / anything else.


If you are one of those people that pays all your bills, necessary living expenses and live off the difference, this post is possibly for you the most. By paying everyone else and making everything else but you a financial priority, you’re sabotaging your relationship with money. You are not respecting money as a tool in your life. You need to make your financial life the number one priority. If not, ask yourself why you are bothering to make an income. A wise man once said, “It’s not how much you make that matters, it’s what you keep”.


Make saving a minimum of 10% mandatory
Pretend you are the government and you require a payment every single month as mandatory and as a deduction. That is how important your savings are to building your wealth. Save at least 10% of your income, if you can’t reach that high for now, go ahead and do at least 5%. You want to get to the point where you can save and reinvest 30% of your income at some point. I’m sure you’ve figured that when you are Financially Independent, saving and investing becomes a heck of a lot easier.


Get in the habit of saving your money. Don’t be a normal consumer. Most consumers are almost always broke and live off credit. Isn’t it great when you can offer cash for purchases? You on average will save a lot more than those that use plastic. There is a know statistic that those holding plastic will spend upwards of 20% and more than those with cash for purchases. When you swipe plastic you don’t feel the pain as much as spending hard earned cash. Start saving your money today and create your own little Micro-Economy, so no matter what happens in the Economy around you, you will be financially sound.


Go ahead and start saving from today. If you are a real spender, your job will be harder, but you can do it absolutely. You will be amazed at how fast your savings will grow just saving a little by little. Also, once your savings grows to a substantial amount, you want to definitely diversify your portfolio and always keep a substantial amount of cash savings as well. Once you invest into a portfolio that is making money for you, you have the power of compounding interest on your side as long as you keep reinvesting. I hope you enjoyed this post and look forward to your comments. To your Success!

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Category: Financially Elite Blog, Income