Do You Do This With Your Money?
Most people don't and never will
You’re The NUMBER 1 Priority
The one thing most people don’t do with their income is: pay themselves first.
Instead of paying themselves first, most people pay everyone and everything else first. Yet, the same people that choose not to pay themselves first are also in the habit of complaining about how they never have any money left over at the end of the month, never have an emergency fund, and never have anything in their investment accounts.
You might ask what and to whom do we pay money before paying ourselves?
Here’s a list:
Mortgage/Rent
Restaurants to eat out
Retail stores to shop
Entertainment and subscriptions
Alcohol and other recreational activities :)
Debts (e.g., car payments, student loans, credit cards, and personal loans)
Travel
Donations (e.g., girl scout cookies)
Do you get the picture now? If we are always paying for everything and everyone else, first, we will never have anything left to ourselves. Continuing this path will only permit us to have zero dollars in the bank.
A Remedy: Setup Automatic Pay-Myself-First Payments
How many of you reading this article today have completed any of the following actions:
Set up a recurring transfer to your ROTH IRA.
Set up a recurring transfer to your 401K before your paycheck arrives.
Set up a recurring transfer to your investment account(s).
Set up a recurring transfer to your savings account.
Set up a recurring transfer to your emergency fund.
Don’t fret if you currently don’t have any automatic transfers in the works; you can get these set up today. Setting up recurring automatic transfers will ensure that you pay yourself first — always — even if you forget.
You may feel you won’t have any money left over when you do this. Trust me, even if you don’t, I bet you’ll find the money to pay your bills. We always seem to find a way to get money to the people who claim to need it the most — except ourselves, of course.
It’s easier not to find the money to pay ourselves.
To avoid habitually de-prioritizing your financial health and future, put some money away before you give your money away.
The consequence of never paying yourself first will catch up to you. Kick this detrimental habit to the curb and set up your automatic transfers today.
To enter a more prosperous realm and lifestyle, start paying yourself first; this is step one to building wealth.
Keep your priorities straight, people.
Still, Struggling to Find Money to Save?
Start with 1% of your income, or better yet, start with one fucking dollar a week.
Just get started—no more excuses.
Gradually increase the money you save weekly, monthly, or quarterly.
As you continually raise the amount of money you save, you will find that your lifestyle will adjust to accommodate; it’s easier than you think.
Plus, you may realize you were spending your money frivolously, which resulted in you believing you had no money to pay yourself in the first place.
One More Thing
Don’t spend your savings. People frequently spend their savings on travel, cars, and excessive shopping.
This is a big no-no.
Avoid this temptation by putting your money in less accessible accounts and committing yourself to staying on the path.
Peace Out.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
Thanks for these financial reminders.