Pay yourself first

  • Jax
  • Jax's Avatar Topic Author
  • Offline
  • Faculty
  • Faculty
  • Academy Principal
  • Posts: 14874
  • Thank you received: 1900

Jax created the topic: Pay yourself first

rescu.com.au/the-me-account-pay-yourself-first/
THE ME ACCOUNT: WHY YOU NEED TO PAY YOURSELF FIRST
February 9, 2016

By Simone Milasas, author, entrepreneur and worldwide coordinator of Access Consciousness

When I was $187,000 in debt, one of the first tools I implemented that really started turning my financial situation around was a ridiculously simple one: Put ten percent of all the money that comes in (that’s the before tax amount!) into an ‘honouring of you’ account – always use that 10% to pay yourself first-before you pay any other bill, and never, ever touch it! It is not a rainy day fund. It is money that you have to watch grow – forever.

Sounds crazy? I thought so at first. I actually heard this tool countless times before I realised that I had to try something different if I desired my finances to change. I also realised that the worst that could happen is I would end up with some money that I would have to spend!

So, what’s the point of having a pile of money you never spend? And why is it so important to pay yourself first, before anything or anyone else?

Paying you first breaks the ‘self-debting’ cycle

Self-debting is such an epidemic in our culture that ‘debtors anonymous’ groups actually exist to help people stop being compulsive ‘self-debtors’. A self-debtor is someone who continually puts themselves last on the list of who gets to receive anything – money, kindness, joy – you name it. As a self-debtor, you will put your bills, credit cards, loans, other people, your dog, just about anyone above you on the “who gets to receive” list. We are told over and over we supposed to give, not receive, and to do otherwise is selfish. The funny thing is, when you start to honour yourself, you begin to have more available in your world to contribute to others as a result.

When you pay you first with the 10% account, you are demonstrating your willingness to value yourself. You may find that the energy in your relationships, career, health and all kinds of other areas begins to change as you honour yourself with money … it’s kind of contagious! You may also begin to recognise other places where you have been putting yourself last and start asking – where else can I be more honouring of me?

Having money takes you out of angst and into ease

One of the things I was surprised to find out is that it doesn’t actually matter how much money a person has – rich, poor or somewhere in between – most people still have ZERO sense of peace and ease with money! Being rich does not automatically solve your angst with money!

How does having money you don’t spend actually help? When you create your 10% account, you will notice at some point that you suddenly have a greater sense of peace with money that you may never have experienced before. The particular ‘peace’ amount is a different dollar value for everyone, but many people tend to notice a real difference when they have an amount of money in their account that they could easily live on for 3-6 months.

And it still works if you have debts!

At one point, I still had quite a lot of debt when I noticed my 10% account had reached about $10,000. It felt so good to have that money there. I could have put it towards paying off more of my debts, but I realised that it was such a huge contribution. Just having it, it helped me acknowledge that I was capable of generating more money, growing the account, and continuing to pay my debts too. That is part of what having peace with money provides you – the sense of knowing you will always have money, and that you always have the ability to generate more.

You can have FUN with your money!

We don’t learn that we can use, and play (yes, I said PLAY!) with money in ways that contribute to our lives. You are allowed to have fun with your 10% account. For example, you could buy items of intrinsic wealth that continue to increase value over time – such as gold, silver or platinum. Antiques, antique jewellery and sterling silver are examples of intrinsic wealth that also have the added bonus of contributing something beautiful to your life! Do not spend your money on anything that devalues over time or that costs money to maintain (like a car or house), and you will be on your way to having a totally different financial reality.
#51323

Please Log in or Create an account to join the conversation.

  • Jax
  • Jax's Avatar Topic Author
  • Offline
  • Faculty
  • Faculty
  • Academy Principal
  • Posts: 14874
  • Thank you received: 1900

Jax replied the topic: Pay yourself first

Honestly, I still haven't done this. In spite of knowing so many people who found it made a huge difference in their life. It's funny how that works! I do believe in it, I recognize the value, I just haven't made money a priority in this manner. However, I wanted to share the idea with you all and recommend that everyone try it. It doesn't need to be 10%. Even if it's 1% you are making a commitment to yourself, and that makes a difference.
#51324

Please Log in or Create an account to join the conversation.

  • Connor
  • Connor's Avatar
  • Offline
  • Faculty
  • Faculty
  • Look for the bare necessities
  • Posts: 2312
  • Thank you received: 535

Connor replied the topic: Pay yourself first

I was taught to do this from my dad who was taught to do this from the Richest Man in Babylon book. It's a phenomenal tool!

House Rules: The only rules are Paradox, Humor, and Change.
#51331

Please Log in or Create an account to join the conversation.

  • Jax
  • Jax's Avatar Topic Author
  • Offline
  • Faculty
  • Faculty
  • Academy Principal
  • Posts: 14874
  • Thank you received: 1900

Jax replied the topic: Re:Pay yourself first

Nice! I'm going to aim to simply not touch my savings account which is not quite the same. But first I need to redo my budget


Sent from my iPhone using Tapatalk
#51333

Please Log in or Create an account to join the conversation.

  • Posts: 605
  • Thank you received: 494

Katie (StormyKat) replied the topic: Pay yourself first

I have been trying to put aside a dollar a day. It doesn't always happen. Sometimes I don't have a dollar cash, so I put loose change in my bucket. Sometimes I forget completely. Having this old pretzel container filled with cash sitting on my dresser is at times annoying--if only I could take that money and put it towards my bills! And sometimes it is really rewarding just knowing that I have a container of cash just sitting there waiting for me to decide what it is going towards. Just seeing all that money sitting there is also kinda nice, knowing it is real and for me and not just numbers on my computer screen. It's not 10% and its probably not 1% and one day it's gonna get spent. Still, it is helpful.
#51338
The following user(s) said Thank You: Kol Drake

Please Log in or Create an account to join the conversation.

  • Jax
  • Jax's Avatar Topic Author
  • Offline
  • Faculty
  • Faculty
  • Academy Principal
  • Posts: 14874
  • Thank you received: 1900

Jax replied the topic: Pay yourself first

But that's still a start! It makes a difference. You can build on this as well. Just having the intention of investing in yourself is beneficial.
#51339

Please Log in or Create an account to join the conversation.

  • Connor
  • Connor's Avatar
  • Offline
  • Faculty
  • Faculty
  • Look for the bare necessities
  • Posts: 2312
  • Thank you received: 535

Connor replied the topic: Pay yourself first

The intention is oh so important! How many people go through life thinking "Oh, I could put some of this away..." and then wake up at 50 with nothing? :/ But, with this mindset, you won't wake up at 50 with nothing to show for your efforts. Keep it up. :)

House Rules: The only rules are Paradox, Humor, and Change.
#51342

Please Log in or Create an account to join the conversation.

  • Posts: 4702
  • Thank you received: 1489

Johannes (Yoshio) replied the topic: Pay yourself first

Thanks for sharing this with us Jax. It is a very interesting thought which I'm going to integrate into my saving strategy as soon as I'm back in Germany. Fortunately I had been in the situation to save some money ever since I started to work which made it possible for me to buy stuff in the past, more or less, with cash and I never yet needed to take out a loan, at least not form a bank. The only one I ever had, had been from my father to be able to pay for my first Feng Shui class but that one I already paid back and I only used this option so that I don't needed to touch my savings which mainly consists of stocks with a high percentage of shares.

As this idea of "paying yourself first" is somewhat new to me on the money side, especially the idea of paying yourself but not using this money for spending it on something but giving it the "only" purpose to see it growing, this is something I will incorporate and dedicate one of the stocks to this purpose.

Qui-Gon Jinn: "We cannot control our emotions, but we can decide how we go along with them."
Bujinkan Busshin Dojo - Wordpressblog
NerdFitness Profile
#51343

Please Log in or Create an account to join the conversation.

  • Posts: 605
  • Thank you received: 494

Katie (StormyKat) replied the topic: Pay yourself first

The intention is huge! I am putting so much of my money away right now it's kinda ridiculous. My medical costs are my main expense. Right now I am stocked up on meds and my doctor is on maternity leave, so I am trying to put a little bit aside into a savings account for a cushion later on when the bills do role in. It feels like its not enough. I am making the effort though, so it will be a slight cushion later on.
#51345

Please Log in or Create an account to join the conversation.

Time to create page: 0.205 seconds