Pay yourself first even if you are living paycheque to paycheque – No excuses 2

The golden rule of personal finance is to pay yourself first. One of the biggest mistake people make is that they pay bills, rent, loans and other expenses first! The government also pays itself first with YOUR money even before you do. This is absolutely crazy.

It is no secret that the rich play by a different set of rules. It is no coincidence that people who are wealthy are in that position – they have achieved and are able to maintain their wealth because they understand how money and personal finance works. They pay themselves first. Then they take care of the little things like bills, loan payments and other expenses. Even Warren Buffet, the richest man in the world, talks about the powers of paying yourself first. It doesn’t matter how much money you make or what your current circumstances are.

You must pay yourself first by putting a set amount of money you earn into a savings or investment account. It can be 15% of your monthly income or as little as £50 a month, the main thing is to get into the habit of paying yourself first before you pay anyone else.

The reason you pay yourself first is because it shows you that you value yourself, your effort, your time and your future.

The best part about paying yourself first is that you can start to build up some savings and investments. You can make your money work for you and make your money bring in even more money. You can invest in businesses, real estate, dividend paying stocks or other cash generating assets in order to build a stream of passive income and make yourself less reliant on the money you make from your job.
I know what you are saying, living pay check to pay check is just that, you have no money left over to pay yourself first. But be honest with yourself. If you can find money for happy hour, sales at ZARA, daily cups of coffee at Costa or Starbucks …. are you really living pay check to pay check or just choosing to misuse our limited funds?

In order to make life the way you want to be you need to change yourself and change the way you see things. You need to change what you are accustomed to and change what you have always been doing. There is a reason you are stuck in the same place. But trust me on one thing, if you work harden ought and assert yourself, and use your mind and imagination, you can shape the word to your desires.

Now I know some people are dead broke. They don’t spend frivolously yet still don’t have the money to put in a savings account. What should these people do? My advice would remain the same, if you want to get yourself out of this perpetual loop of pay check to pay check living, you have got to put in the effort and persevere. If it means that you need to work extra hours, the go ahead and do it. If it means working extra hours on the weekend, then so be.

To most people, the weekend is a time to rest and relax! But if you want to change your situation, the weekend should be a time to put in that extra effort to make sure you have that cash to put towards your savings. Use the weekend to pull yourself out of the hole you might be in financially or professionally and develop yourself and skills so you can start to live the life you want…not the life you are preparing to settle for!

Take a look at your bills, your dreams and your current circumstances then ask yourself if you get to chill on the weekend.

Use this weekend to get to work on the big picture and your dreams!

Use the weekend to develop a business plan for that crazy idea you keep talking about and invest time researching and investigating how you are going to make it a reality!

 Turn the TV off and turn your phone off and get to work…I know you want to chill out and hang out with your friends but guess what they aren’t going to make your dreams a reality, they aren’t going to pay off your student loans and they won’t be there for you when you lack the knowledge, skills and personal resources to make moves in 2016!

All I’m saying is Put in a little extra effort and time to make what seems impossible, possible and that all starts by using every spare minute you have to change yourself and change your current circumstances.

Be honest with yourself and if you get that sick feeling in your gut when you look at your bills, debts, career prospects or living arrangements and lifestyle…. Do something. Don’t wait until it’s too late and you’re overcome with stress and overwhelmed by your situation, because that’s the road to depression, illness and regret!

It doesn’t matter where you start, it matters that you start and start right now!