Certainly, some of the money you earn is yours to keep. This is a simple idea but it is amazing how many people overlook paying themselves when money comes in. You might think “of course the money is mine to keep, I earned it!” But if you look, you will see your money going out to this bill or that bill and at the end of the month there’s nothing left.
This happens all too often. One of the best pieces of financial advice I’ve seen is to pay yourself first. Create an online brokerage or savings account and add some amount every time you get paid. Treat it like a bill to yourself. You’ll be amazed how quickly any sum will accumulate.
If you fail to pay a bill someone will harass you to pay it, but if you fail to pay yourself, no one cares. You have to look out for you! The more you can pay yourself, the more freedom and power you will have in life as you begin to build wealth.
This simple habit can change your life. Pay Yourself First! – A great book I recommend on this topic of building wealth is The Richest Man in Babylon by George S Clason