Pay Yourself First
Pay Yourself First The first, and perhaps most important thing to learn in financial planning is the need to pay yourself first. While the saying is simple, I admit the action is hard. It takes a lot of will power and self-discipline. It means “living below you means”. You need to make it part of your core belief system. If you start when you begin your first job it is much easier, just treat it as another tax, only you are the sole beneficiary of that tax. If you never get used to spending the money you will not miss it. This is why I always enjoy talking to and educating young people about putting together a financial plan. If you are joining me latter in your life that is ok, it is harder, because you are used to a certain standard of living, but you still need to start. It is a onetime adjustment and the sooner you make it the better off you will be and the smaller the adjustment. If you wait until you are about to retire you will be forced into a huge adjustment and c