Pay Yourself First: A Vehicle For Financial Empowerment and Freedom
What is your money, and what is “Your Money”
Previously I wrote about five things to do now to improve your financial future. One of those items was following the 80/20 rule. Within that section, I briefly mention the concept of “paying myself first”.
Here is the excerpt.
As for the other 20% (or 20 cents per dollar), that is for you. You can either save it, donate it, invest, what have you — anything but regular spending.
What I like to do is “pay myself first” every month.
In my bank account, I have an automatic transfer set for the first of every month that transfers 10% of my monthly after tax income (more on that in a moment), to a high yield savings account.
I feel this small section deserved it’s own post, considering I think it’s one of the most important concepts to creating a sound financial philosophy.
This is that post.
