Pay yourself first from "summary" of The Wealthy Barber by David Barr Chilton
The first step to building wealth is to automatically save a portion of your income before spending it on anything else. This concept is known as paying yourself first. By setting aside a fixed amount of money each month, you are prioritizing your future financial well-being over immediate wants and needs. One of the main advantages of paying yourself first is that it helps you develop a habit of saving. By consistently putting money away, you are building a financial cushion for emergencies and future goals. This disciplined approach to saving can help you resist the temptation to spend impulsively and ensure that you are always working towards your long-term financial objectives. Another benefit of paying yourself first is that it forces you to live within your means. By allocating a portion of your income to savings before paying bills or discretionary expenses, you are essentially budgeting for your future self. This can help you avoid accumulating debt and falling into a cycle of financial instability. Furthermore, paying yourself first can help you take advantage of compound interest over time. By investing your savings wisely, you can grow your wealth exponentially through the power of compounding. The earlier you start saving and investing, the more time your money has to grow, setting you up for financial success in the long run.- Paying yourself first is a simple yet powerful concept that can transform your financial life. By making saving a priority and automating the process, you can build wealth steadily over time and achieve your financial goals. Start paying yourself first today and watch your financial future flourish.
