Pay Yourself First

Most people approach saving by waiting till the end of the month seeing whats left an saving that amount. This approach is the wrong mindset and while you may save some you probably won't save as much as you would if you were to Pay Yourself First.


There's nothing fancy to this approach when you get paid you pay into your savings before you pay any bills, Some people may argue that they would worry about running out of money before the end of the month and not have enough left to pay bills. If you do look like you will not have the money left to pay all your expenses come to the end of the month you have two clear options,



Cut back on some of your expenses. make the decision to not go out for dinner this month, cut back of some other luxury items you may normally purchase.
Up your income. That doesn't mean going out to find a higher paying job. This could be simply selling some of the stuff around your house that you never really use anymore. That Christmas present you haven't touched since you opened them last year.

There is a reason that experts advise that you go to the gym first thing in the morning and it's not for physiological reasons. It's all to do with psychological reasons. You wake up thinking I will leave the gym this morning and go on my lunch break, then you get to lunch you are too busy and put it off again until after work. Suddenly you end up working late or making the kids dinner and the gym gets put off completely. It's the same kind of reasons that lead to you not saving at all come to the end the month. That new watch was just to good a deal to turn down. You starting thinking it's ok I'll just make sure I save next month. Next month comes around and you have an issue with your car and you can't afford to save again this month but not to worry you'll have a nice watch too show for it.


Paying yourself first I would say is the first step that you need to take to achieve financial freedom. Firstly you should look at your income and expenses and figure out what you think we can afford to save. During this process, you may find ways that you can make changes to your lifestyle to allow you to save more. This could be from bringing lunch into work with you or canceling the gym membership you haven't used since last January.


The next step would be to set a payment goal if you can only afford a small amount now try and up that figure in small amounts for future payments. Try and set a goal for the figure you want to be able to pay yourself and work towards that goal as soon as possible. Dreams without goals are just that dreams.


One book that will keep mentioning is



Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!






it's very easy to read and was really eye-opening to what changes can be made to help us achieve financial freedom.


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