Pay yourself first
Do you “pay yourself first?” Most people don’t. Most of us are much more concerned with paying our bills — paying everybody else — than with paying ourselves. But if we don’t … who will? And if we don’t put ourselves at or near the top of the list, we’ll end up at the bottom — the last to be paid, by default.
Here is a system developed by one of my mentor and this how it works. All income is IMMEDIATELY (same day as received) divvied up as follows:
- 10% goes to “pay me” — into savings that will accumulate and be used for investments and other opportunities that can create ongoing income and real financial freedom.
- 10% goes into savings for big expenses that may come along without warning. I just deposit it with gratitude and forget it until the time comes to use it.
- 10% is my tithe — goes back to the Source via people and organizations from whom I receive spiritual nourishment (refer to my first two articles).
- 10% goes into the “Fun” account — just what it sounds like! And for many people this may actually initially be the most challenging part: letting yourself spend money on yourself just for fun and enjoyment. This fund must be SPENT regularly!
- 5-10% goes for education — books, tapes, courses, seminars. It’s been said that if you think the price of education is steep, try ignorance.
- 50-55% goes for living expenses, bills, etc. All the normal day-to-day costs of living, like housing, food, clothing, transportation, health care, gifts, and so on.
Having a SYSTEM removes guesswork and constant decision-making, builds good habits, and makes the whole thing much easier and more SUCCESSFUL than just winging it.
The system above may or may not be the perfect fit for you — and, yes, it DOES take some rearranging, reprioritizing, and major simplifying to manage at first. I encourage you to tweak this one or to find or devise a plan that YOU can stick to.
SYSTEMS allow ordinary people to do extraordinary things!
