The Principle of Paying Yourself First
Congratulations! You are now an adult, and the responsibility of caring for yourself is on your shoulders. To ensure that you have a comfortable and fulfilling life, you must obtain a means of financial stability. This can be achieved through securing a job, freelancing, or finding another reliable source of income such as renting out a spare room or selling handmade crafts. By doing so, you will be able to provide for your basic needs, including a secure place to live, nutritious food, adequate clothing, proper hygiene, access to communication, reliable electricity, opportunities for self-development, and the ability to pursue happiness.
Where should you begin? If you are fortunate, you had some job experience and were able to save money before this time. If not, that is okay. Today is a good time to start. By taking control of your finances and planning for the future, you are setting a clear direction for your financial journey.
Financial experts advise that there are numerous intelligent ways to make your money work for you. You could invest in stocks, bonds, mutual funds, or real estate. Starting a business or saving for retirement are also viable options. It’s crucial to grasp the risks and rewards of each choice and decide which aligns with your financial goals and risk tolerance. Consider seeking the guidance of a financial advisor who can assist you in navigating the intricate world of finance and making well-informed decisions. Whichever path you choose, remember that patience and persistence are the keys to long-term financial success.
One of the most important habits to develop when it comes to saving money is to prioritize paying yourself. This means setting aside a portion of your income before you pay any bills or make any purchases. By doing so, you are not only building up your savings but also creating a sense of security and peace of mind. This simple yet powerful habit can help you take control of your finances and set yourself up for long-term success.
Watch this video of Robert T. Kiyosaki, the author of “Rich Dad, Poor Dad,” describing what it means to pay yourself first.