What Does “Pay Yourself First” Mean? What does your daily trip to your mailbox consist of? -Bills, -Bills, -Mortgage payment, -Overwhelming Coupon books, -Jury Duty Notice. All demanding payment or your time. It feels like you have no options with your money and any saving can only come AFTER all the bills... if there’s anything left over. UNDERSTAND THIS: The secret is to “pay yourself first.” The first “bill” you pay each month is to yourself. Shifting your focus each month to a “pay yourself first” mentality is subtle, but it can potentially be life changing. Let’s say for example you make $3,000 per month after taxes. You would put aside $300 (10%) right off the bat, leaving you $2,700 for the rest of your bills. This tactic makes saving $300 per month a certainty. The answer to how much you would be saving each month would always be: “At least $300.” If you stash this in an interest-bearing account, imagine how high this can grow over time if you continue to contribute that $300. That’s exciting! But at this point you might be thinking, “I can’t afford to save 10% of my income every month because the leftovers aren’t enough for me to live my lifestyle”. If that’s the case, rather than reducing the amount you save, it might be worthwhile to consider if it’s the lifestyle you can’t afford. Ultimately, paying yourself first means you’re making your future financial goals a priority, and that’s a bill worth paying. Want to start planning for your future but don't know where to start? Let's get together. https://meetme.so/RyanWinkle #NewMoneyHabits #AbsoluteCapital #WealthWave #PayYourselfFirst #Savings #Investing #BuildingWealth (at Absolute Capital LLC) https://www.instagram.com/p/BxA4ZKdB_6Y/?utm_source=ig_tumblr_share&igshid=1e4gpomyphjca
