Today we are discussing something that can be summed up pretty short and sweet….PAY YOURSELF FIRST!!
This is going to be a major part in your success in financial freedom.
Over the past few days we have discussed the mindset of getting financial fit, creating a budget, and ways to save. Today we focus on what to do with those savings you are finding. I am going to be direct on this one you must pay yourself first! And no I don’t mean that cup of coffee at Starbucks but rather money savings.
One place to pay yourself is through your retirement plan. And don’t give me the - I have years till I retire. No put some into that account. Maximize your earnings especially if you company has a match (more to come on this topic in a couple days).
In your budget you should have found some savings for a rainy day. Don’t let that money just sit in the checking account tempting you to spend it. Rather open a savings account and direct deposit the extra funds to that account in each paycheck. When you don’t see the money in your checking or actual cash in your pocket you are less likely to spend it.
Try and get into the habit of putting money into your savings account right off the top. It is recommended to save 20% of your net earnings. But you may need to start off with 5% and work your way up.