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| 9.6 | Money Tip - Pay Yourself First |
| 9.6/10 |
105
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| 1/24/2009 |
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How anyone can become rich if they remember to pay themselves first.
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 | Pay yourself first! This is sometimes called the golden rule of making money. At first it may not make much sense. Don’t you get all of your pay? No! Once you get paid, you then pay the government taxes, you pay your landlord rent, you pay your car payment, you go out to celebrate and pay the restaurant and so on and so on. For the average person, there is nothing left at the end of the month!
When you get your check, the first thing you should do is take at least 10% of the money and save it. This is paying yourself. Once this is done, pay the rest of your bills. You will notice that your lifestyle is almost the same. You will also notice that the money you kept is gone, just like the month before, but this time 10% is safe and yours to keep!
We never have enough money to cover our desires. We always want more. This is part of human nature and it is what drives us to create and succeed in life! The problem is that this causes the average person to spend all of their money on the things they want today. If you set aside that 10% it will be safe and it will grow and start working for you! Think how much money you would have if you had done this all alone (if you add the power of interest to this money, the amount of wealth created is truly amazing!) Think back in the past. Do you remember the things you spent your money on? Are they gone? Were they passing interests? What things are you spending on now that are passing interests? What things could you do without? Where can you cut back? Do it today and start paying yourself!
The best thing to do is to set up a direct deposit of the 10% from your paycheck into an online bank. This way, you will not be tempted by every ATM machine you see and your interest rate will be higher than a normal bank. Contact the HR person at your work to find out how to set up direct deposit. Ing Direct is one good online bank (there are many others out there as well).
It is very exciting to watch your money grow! You will find yourself trying to find new ways to add to the sum. You may start putting away 15% or more because of the satisfaction you feel! Your mind will start to find other ways to make money and add to your savings. You will be shocked at how quickly the money adds up. After a while, you will need to find a good investment and start having the money work for you!
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Further Information
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| Leave a Comment About the Tip: 'Pay Yourself First' |
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| Comments | Showing Comment 1 - 3 of 3 |
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| 1 | Use Direct Deposit |
| Use direct deposit to pay yourself first. Send 10% of your money to a bank account that you do not use. Do not keep a bank card for this account. Do not keep a checkbook. You will be shocked when you remember to check the balance and you see how large it is!
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| Comment 1 On:Pay Yourself First
Added On: 2/19/2009 8:32:07 PM |
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| 2 | You Gotta Have Guts |
| All rich people know how to take a beating and still keep going. The recent market has probably scared many people. But, this is really just an opportunity! The ones who are too scared to keep playing miss out.
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| Comment 2 On:Pay Yourself First
Added On: 2/13/2009 1:33:47 PM |
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| 3 | Dollar Cost Averaging |
| It works. Just invest a small percentage every month. You will see your money double about every 7 years....(well...before this year at least)
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| Comment 3 On:Pay Yourself First
Added On: 2/13/2009 1:32:54 PM |
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