Simple Ways to Pay Yourself First

A BILL YOU'LL LOOK FORWARD TO PAYING

While many people may believe the old adage, "Look out for number one," most fail to do so when it comes to financial matters.

Everybody has monthly expenses and the first check that gets written every month should be to yourself. This simple investing strategy supports your plan to build wealth.

To begin "paying yourself first" follow these easy steps:

1. Decide on an Amount

Experts suggest that you pay yourself 10% of your take-home pay. If you absolutely can't put that much away, start with as much as possible - but be sure to increase the amount to 10% over a pre-determined period of time.

Think about the small expenses that add up-trips to the coffee shop, lunches out - and all the 'doodads' we purchase. Eliminate a few frivolous expenses and you'll be on your way to socking away 10% easily...and have it available to use in creating assets.

2. Do it Automatically

Don't be tempted not to pay yourself each month. Have the money electronically transferred from your checking account into a 'holding tank' to draw from when you need it or an investment plan you've developed.

3. See the Long-Term Benefits

If you saved $400 a month, and assuming a modest growth rate of 7%, you would have amassed - in 40 years - a million dollars. Need the money sooner? Give yourself a raise!

One of the best books in my library covers this topic in a simple fable. It's a captive story with a real punch that make you thing!

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The Richest Man in Babylon
George S. Clason