Hi, Today I was thinking that I should write a little more about the subject that we ended with in the last post, about setting goals for your investing and...
Quick question: do you pay yourself first or does someone else get paid before you?
How important are you to yourself?
Most people would answer “very important” I hope.
Yet, most people tell their unconscious mind every time they get their salary that they are the least important of all.
In what order do your bills get paid?
Most people pay rent, electricity, food, loans, phone bills, water and all other things and then whatever is left will go to them. Isn´t that a bit unfair?
I mean, after all, you are the one doing all the work, then you are the last person getting a share!
Have you ever thought about how your unconscious mind sees this?
You are the least important “bill” to pay.
To change this is not that hard, what you can do is instead of paying yourself last, you put yourself at the top of the bill list, and pay yourself first. So once your salary comes into your account you have a auto transfer for YOUR share of the money to some savings accounts. You shall always be the first one to get paid since you are the one doing the work, right?
So how much are you worth?
For me, I think a fair number is 25%. Those 25% you divide into three different savings accounts.
1st account – the happy money
This is where you put 10% of my salary (before tax). This money is for you to spend as you like on things that make you happy and put quality to your life. Things like golf, traveling, dining out, going to the movies or going out shopping or whatever that you like doing.
2nd account – the investment account
This is where you put 10% of the money that you use to invest for your future self to have a better life. Some of the money you invest right away and some of the money you save up for future investments. Some of the money you spend on educating yourself to know what you´re doing when you invest and to become better and smarter with your money.
3rd account – the feeling good within account
The last 5% I give away in different forms to causes I find important, there is no better feeling than to help people in need or the environment, or animals, or whatever we feel and care for. It makes you feel a lot better within and helps you sleep better at night. It´s also true what is said that “give and you shall receive”. If you give to things that you care for there will be returns in different forms later.
The rest of the salary is used to pay for all the other people and companies that want your money.
Now you might think that you can´t do that, there is simply not enough money coming in to pay myself first, absolutely not 25%. Then start with 15% or 5% or 3% and increase with a couple of percent every month. Believe me, you will find a way to do this if you just put your mind into it.
Try it, try to pay yourself first, I know it´s worth it and it works, as will you.