Pay Yourself First

Aside from hard work, those who are financially wealthy consistently cite the habit of saving as one of the secrets to their success. If you’re serious about saving, then it should be your priority – which means that you should pay yourself first. Our natural instinct when we get our pay check is to spend first, whether it’s to pay our bills, or to reward ourselves with a trip to the mall or a meal out with our family. To save systematically, we should be setting aside what we’d like to save as soon as our salaries come in. It’s the Income – Savings = Expenses formula, and it works! How much savings you should set aside depends on your goals, but an easy way to start practicing the formula is to set aside 10% of your paycheck into a savings account that you shouldn’t touch. Before you know it, you’ll have a substantial amount set aside.