We’ve all heard the financial advice, “Pay yourself first,” more times than we can probably count. Many financial experts consider this to be the most important financial tip in existence and I agree! You do not know the power of “paying yourself first” until you start doing it.
What does this advice really mean?
It means saving some of your money before you pay any of your bills or do anything else with it. Ideally, the money would be taken out of your paycheck before you ever see it and be deposited into some sort of investment or savings account. If you don’t have the money in your checking account, you won’t be able to spend it.
It might seem that you could just as easily pay your bills and then save the money that is leftover, but in reality that hardly ever works. Ever break a $100 bill and wonder where it all went? If you never had the cash in the first place you probably would not have spent it all.
What commonly happens is our lifestyle expands to the amount in our bank account. Ever get a raise or a bonus and buy something to celebrate? Get a new job and go out and buy a new car?
By paying yourself first, you’ll find that you adjust your lifestyle accordingly and save money easily.
Here are a few tips to help you Pay Yourself First!