Most Essential Solutions and Motivations Behind Boosts in Financial Security
Do you know what it means to pay yourself first? Do you want to be successful in saving and with money? Saving means building an emergency fund, which is the key to financial security, one of the first steps towards financial freedom.
But many people have a hard time accumulating wealth
The reason this difficulty exists is that if you have ever tried to save, you know that every time you accumulate money, there are always “exceptions” that make you skip good intentions. Therefore, it is important to have a good strategy to successfully save. This is where the rule of paying yourself first comes into play.
Read this article if you want to stop wondering why you have so little savings or why you don’t have the money you want at the end of the month.
What does it mean to pay yourself first?
The first payment rule of oneself is perhaps one of the most important when it comes to personal finance. The basic principle of the rule of paying yourself first is that what you should do each month when you receive your salary or income, that is, automatically save a portion of it before you have time to do anything else. Make a visit to vimeo.com/jamesscholes1982 in this case.
- Before using your money to pay monthly expenses or making any kind of purchase, you should use your salary to pay yourself.
- That is, you have to save a specific amount, until you have a good emergency fund to invest and thus make your savings profitable and accumulate wealth.
This rule is also sometimes known as reverse budget. In other words, instead of focusing on paying bills and other debts first, and then putting aside what’s left to save, the key is to first decide how much you want to save and invest, then pay the rest.
The philosophy behind the rule is to move from a consumer mentality to a saver and investor mentality.
Why should you pay yourself first?
Saving money can seem difficult and sometimes even impossible. Between rent or mortgage, food, debt, water, gas, electricity, tantrums, etc., it will seem that there is never enough money in your checking account at the end of the month to save.
That’s why it’s important to pay yourself first, that way you make sure you’re saving instead of spending your money. You have a better chance of achieving your financial goals if you focus on what really matters.
Here are some good reasons to pay yourself first, which I hope will help you see the importance of this powerful personal finance rule.
Learn to prioritize your finances
When you start using this rule, you will change the way you think about financial matters, you will learn what you need to consider to be successful in your personal finances.