Pay Yourself First

Hi folks,

Steve here.

In the world of finance, there is a common adage: "Pay Yourself First." This is a simple yet powerful concept that can help individuals achieve their financial goals. When you receive a paycheck or any form of income, the first step is to set aside a portion of it as savings, typically around 10-25%. By doing so, you build a solid financial foundation for the future. After saving, the next priority is to pay off any outstanding bills. This ensures that your financial obligations are met and prevents unnecessary fees or penalties from accumulating. Once all bills are settled, any remaining funds can be allocated to discretionary spending. While enjoyable, discretionary spending often involves purchasing non-durable items that provide temporary satisfaction. In contrast, savings represent tangible assets for the future, such as an emergency fund or a down payment for a home. Prioritizing savings over discretionary spending helps individuals build a strong financial f…