Monday, August 3, 2009
Paying Yourself First
What does it mean to pay yourself first? Think about it. If you earn money, say, in the form of a paycheck, and you spend all that money, who has gotten paid? Say you spend the money on taxes, a mortgage, credit card bills, restaurants, and stores. The government, credit card companies, restaurants, and stores have all gotten paid. But, you didn't. That's right. You may have felt like you got paid, because you have "stuff" now. Yet, you didn't get paid, because you don't have the money. You acted as sort of a middle-man; those companies got paid through you. You were like a delivery person, taking money from one rich person to another. To reward you, they threw you a treat. Be sure that you are paying yourself first; this means to always save money that you'll never spend on "stuff." Ever.