PAY YOURSELF FIRST
Paying yourself first is the principle of saving part of your income no matter how little you earn, how many expenses you have or how much debt you have to settle. Whether we live in a financially stable or difficult time, it is vital to our monetary health that we live in a financially stable or difficult time; it is vital to our monetary health that we maintain a sustainable savings account. This is very important as it gives a considerable sense of security.
The bible is in support of our settling some amount from our earnings for safe keeping or eventualities. Hear this “Proverbs 21:20 KJV
There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up”. However, it is important for you to realize that tithes and offerings,charity and basic allowances for living such as rent( where applicable), feeding, family upkeep and so on, must first be removed. This singular act can help you build tremendous wealth.
Why pay yourself first?
Paying yourself is the foundation for financial success. Your ability to save determines whether you would eventually be classified as rich or poor. Many benefits accrue to individuals and families who keep apart some fraction of their earnings. In the first place, you will be mentally establishing savings as priority. By doing this you are saying you are more important than all other activities or institutions crying for attention.
In the long-run, this principle empowers you the more; it encourages sound financial habits. It helps you build a cash buffer with real world applications. For instance, you can purchase a house of your own or save for retirement. The freedom that comes from following this principle opens a world of opportunities to you.
Furthermore, you can’t help others if you can’t pay yourself. Let’s assume you keep paying at your own expense, you will be making yourself a slave to others there by remaining weak.
One needs to sound a note of warning here however that we should not get greedy or accustomed to a lifestyle that we don’t really require. For examples, having luxuries that are of no benefits besides mental satisfaction of their possession. Therefore, to rise above struggling financially, we need to avoid that bad methods of those who have collapsed financially.
How do you pay yourself first?
An individual can pay himself first by engaging in various activities
Enrolling a retirement plan as early as possible. This is much more encouraged for individuals working in companies and the company the individual is working for adds some percentage to the individual’s savings.
Start a saving account with interest. You can also set up an automatic transfer of your salary into this account directly from your paycheck or from your regular bank accounts. Saving does not require a large sum of money initially. You can start by trying to save 1% of your income or profit. This will seem painless, from here you can move on to 3% or even 5%.
In every remote situations business persons can also devise a plan of setting aside some amount of money from their profit for safe keeping in the bank.
Attitudes that help paying yourself first
The following attitudes will make it easy for you to nurture the habits of savings:
- Develop self-control and desist from quick self gratification. Buy only what you need. There is no sense in purchasing the hottest gadgets or the trendy products unless it is necessary. A cursory look or flash back will reveal to us that most of the items we collected over the years only end up being junks in our ward robes,boxes or houses. The question we should ask ourselves when buying any item a gadget is “Do I really need this?
- Track your budget expenses. Allocate the amount you will spend each month and stay in that boundary. Note that you must not exceed the amount you receive as monthly payment,salary or profit from business.
- Learn to spend money when you have it. Do not borrow to spend on nonessentials. It could lead to indebtedness.
- Be patient with what you intend to purchase, small sacrifices lead to great satisfaction. For example, you may decide to go on public bus rather than your own car for now and then but later when your condition improves.
5.Demonstrate sound financial principles and be open to lots of discussions and explanations as regards your financial decisions.
- Do not dispose of what you have unless it has been well used.
7.Always keep records and budgets. Keeping records,having a plan and being honest with oneself won’t get one into financial troubles.
- Don’t keep financial obligations you can’t keep.
- Don’t stand in for people’s credit.
- Always pray before venturing into any business or endeavors and don’t allow anybody to hurt you into a deal. Don’t sign a deal until you check it thoroughly.
- As a child of God, it is important, for your own sake to keep out of debt. Debts will make you lose a portion of your freedom.
With firm determination and discipline on your part, and with the All-sufficient God on your side, your financial cup will be full and running over. You will never lack in Jesus name. Amen