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Pay yourself first

I’d like to share with you a concept called “Pay Yourself First”.

The truth is that because we are living in a capitalist society, everyone is trying to get their hands on your money. Big businesses use clever marketing to take advantage of powerful psychological drivers that are hard wired into all of us.

Now, with so much temptation on a day-to-day basis, why not pay yourself first by saving some money for when you won’t be able (or don’t want) to work?

Yes, this may reduce your cash for other things now but the chances are you can reduce your monthly expenditure without affecting the quality of your life. In fact, you may find the less you spend the happier you are!

Is this all boring?

Perhaps, but I reckon it is much less boring than sitting around without any money to spend for years and years. That would be like living like a prisoner in your own home, you deserve more than that, don’t you?

Working out how much you need for the rest of your life takes a little time and energy but it’s well worth doing.

If you find there is a shortfall don’t panic. There are probably lots of things you can do in your business to improve what you take out. And, there are lots of thigs you can do with personal expenditure to reduce what goes out of your pocket.

Here are some ideas to get you going:

  • Paying off expensive debt like Credit Cards
  • Driving a different car
  • Drive slower so you use less petrol
  • Swap the second car for a bike
  • Do not buy anything on the spur of the moment
  • Taking less expensive holidays
  • Drinking less (or no) alcohol
  • Stop smoking
  • Rent out loft space for storage
  • Rent out your driveway as parking
  • Cancel the gym and walk more
  • Shop smarter
  • Drop a brand with food
  • Buy less food
  • Buy second hand books
  • Cancel paid for TV

 

Have fun by being prudent in the knowledge that you are paying yourself first.