This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Personal Finance
Most People Never Do This With Their Money
And never will.
The one thing most people don’t do with their income is: pay themselves first.
Instead of paying themselves first, most people pay everyone and everything else first. Yet, the same people that choose not to pay themselves first are also in the habit of complaining about how they never have any money left over at the end of the month, never have an emergency fund, and never have anything in their investment accounts.
You might ask what and to whom do we pay money before paying ourselves?
Here’s a list:
Mortgage/Rent
Restaurants to dine out
Retail stores to shop
Entertainment and subscriptions
Alcohol
Debts (e.g., car payments, student loans, credit cards, and personal loans)
Travel
Donations (e.g., girl scout cookies)
Do you get the picture now? If we are always paying for everything and everyone else, first, we will never have anything leftover to ourselves. Continuing on this path will only permit us to arrive at the golden years with nothing in the bank.
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The Remedy: Setup Automatic Pay-Myself-First Payments
How many of you reading this article today have completed any of the following actions:
Set up a recurring transfer to your ROTH IRA.
Set up a recurring transfer to your 401K before your paycheck arrives.
Set up a recurring transfer to your investment account(s).
Set up a recurring transfer to your savings account.
Set up a recurring transfer to your emergency fund.
Don’t fret if you currently don’t have any automatic transfers in the works; you can get these set up today. Setting up recurring automatic transfers will ensure that you pay yourself first – always – even if you forget.
You may feel you won’t have any money left over when you do this. Trust me, even if you don’t, you’ll find the money to pay your bills. We seem always to find a way to get money to the people who claim to need it the most – except ourselves, of course.
It’s easier not to find the money to pay ourselves, though. To avoid habitually de-prioritizing your financial health and future, put some money away before you give your money away.
The consequence of never paying yourself first will catch up to you. Kick this detrimental habit to the curb and go set up your automatic transfers today.
To enter a more prosperous realm and lifestyle, start paying yourself first; this is step one to building wealth. Priorities people.
Still Struggling to Find Money to Save?
Start with 1% of your income. Gradually increase the amount of money you save weekly, monthly, or quarterly. Continually raise the amount of money you save, and you will find that your lifestyle will adjust to accommodate; it’s easier than you think. Plus, you may realize you were spending your money frivolously, which resulted in you believing you had no money to pay yourself with in the first place.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.