Thursday 12 May 2016
Pay Yourself First
There are many benefits from “paying yourself first”. Regular deposits will, over time, develop into a large balance. This money can go towards anything from emergencies to planned future purchases. Having this money on the side is a good idea because it will always have a useful place and will build to tremendous wealth over time. There are other aspects as to why “paying yourself first” is a good option. For example, the psychological aspect. There are many mental benefits to saving up your money. Saving is a good motivator in itself while money on it’s own also creates some peace of mind incase there was ever an emergency. Another benefit of “paying yourself first” is that by reducing your income as soon as you get it, you are able to rationalize the way ways to spend it.
To pay yourself first, you must designate a certain amount of your paycheck as your pay and pay that money to yourself first, before bills or anyone else. The important part isn’t how much you pay yourself, the important part is that you pay yourself first instead of last.
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I like how you included that is doesn't matter how much you pay yourself as long as you pay yourself first. It shows that no matter what you will build wealth overtime like you mention in your blog. It also shows that you don't have to have a lot of money in order to pay yourself first like one may think they need since they are giving up money from their paycheck.
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ReplyDeleteI also enjoy the great read and how you incorporated that it won't matter how much you give yourself inasmuch as you give it to yourself before others. It shows that as long as you incorporate what you have built overtime (wealth from savings) to pay yourself first like many young adults should in this generation. It later helps to build a nice nest of savings in case of emergencies i.e- car breaking down and need to repair it , affording those price gouging school textbooks , or paying for the odd video game once in awhile.
ReplyDeleteThank you for the advice i am now going to start saving $40 from all my paychecks to pay myself first and save money for the future.
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