Are You Paying Yourself First? Why It’s Important? How to do it!

85

The Importance of paying yourself « FIRST »

budget, saving, finance, plan

The problem is likely that by the time you’ve paid for everything else—rent, groceries, utilities, and maybe even a few dinners out—you often don’t have enough left to add to savings … at least not until your next paycheck.

My father used to say quote pay your bills so you will not have a problem burrowing from the banks unquote.

My mother used to say quote he who has no debt is a rich person unquote.

And then financial advisors are telling everyone that we all should have at least 3 months worth on the side as saving in case of a hard case.

But the school didn`t even teach me how to do a simple budget !!!

How do you do that ??

Where to start ??

At 20 years old, I had not much to pay beside my car, phone so I always had money to party, met my girlfriend, and moved in together, then things started to change from there, living with someone is different than living alone at my folk’s place, we had to buy … furniture = loan, … soon we were talking about a house, another loan, kids came along, so needed a bigger car = loan, soon I was always out of money, therefore I faced a new situation, I had to make a budget ….

Asked my father, he wasn’t even having one himself, asked friends around … ??? a budget ??? they ask …

back in my twenties … well internet was barely starting …

Sat down and started to write down what I had to pay versus what I was earning … soon realized I was in the red, yup I was not earning enough to cover my monthly expenses … followed my father’s advice so I haven’t had any problem borrowing money, which is actually why I am in the red, now if I wanna follow my mother’s advice, and with that, I have a problem, the house is on a 20 years mortgage loan, the car on 7 years, but in 7 years I will have to change it again .. which means another loan, still have to pay school loan, along with any other stuff required that will need to be loaned … so ending up without debt is almost impossible …



Now I am 30 years old and still reading that I should have 3 months of saving aside in case of a hard situation !! 3 months of saving ??? how am I supposed to do that ?? I am still living from paycheck to paycheck.

Having 3 months’ worth of saving in case of emergency is one thing, however, I am starting to think about retirement …. And still don`t know how to put money on the side … At that point I knew I had to find a solution, I started to buy books like “Rich dad, Poor dad”, “Amiliorer ses finance personnel, un art a maitriser”, and so on, eventually, I understood something, The first person that I should pay ….” IS MySelf “…
YES pay myself before paying the bank … paying myself first, means that I am finally putting money aside for me!

Opened a second bank account and I choose to put 200$ a month aside, it took a while, but now I have 3 months’ worth of saving aside, as this adds up I am starting to consider this money for my old days.

I was wondering if 200$ a month was too much however this means only $50 a week difference … I learned to live without that $50 rather easily.

The sad thing is the banks were always ready and eager to lend me money, for as long as they figured I am able to pay them back. But they were never concerned about if and how I was putting money aside.

Our school system didnt even teach me to make up a simple budget .. but hey, dont worry I`ve had a teacher who has spent hours teaching us how to play one of those

I honestly hope you’re 20 years old and are reading this, because then you will have an edge on me, and please follow this advice: “ pay yourself first “.

The only cost for reading this article is, …. please use the button on the left, share it with your friends, never know it might help someone you care about.

God Bless

Sylvain Richard

Please note: I am not a financial advisor or have any university degree in finance, I am only sharing with you my experience.

 205 total views,  1 views today