If you are like most people, you are in hurry to pay others first. That’s right-when you receive your paycheck, you worry first about paying rent, paying your car note, paying student loans. After that, you set aside stuff for utilities and groceries. Once all that cash has been sucked up by liabilities and expenses, you finally get around to giving yourself a little something. If there is anything left over, that is.
Sadly, this is the situation the vast majority of Americans find themselves at the end of every month. Given how rocky the economy has been in the past few years, many find themselves with nothing at the end of the process. Well, the hard reality is that if you want to finally break free from the rat race, you need to figure out how to pay yourself first.
Here are 5 key things you need to know so you can pay yourself first.
For most people, they only have an urge to spend something if they can see that they have something to spend. Now, if you enrolled in a forced savings program that sets aside a large chunk of your monthly income out of every paycheck, you will realize that you won’t miss the money you put in the forced savings program. You are forced to live with the remaining amount of cash. It might be rough at first but you will quickly get used to it.
It pays for your dream projects
Every person has a dream project. Whether it is a small business, a small improvement project, or even a dream trip. Regardless, we need money for this small, nonessential, project. If we focus on these projects, we can get the motivation we need to put away a little something at the end of the month.
It pays for a future life of comfort
If you keep your eyes on the prize, you will never let short-term pain and short-term hassles get in your way. Keep your eyes on the fact that you are saving for a worry-free retirement. Keep your mind focused on the fact that you want to reach a stage in your life where you don’t have to worry about paying the rent or paying for your daily necessities. Focus on the amount of comfort you’ll need in retirement. Let your desire for such a life push you to make the necessary sacrifices now.
You don’t need much anyway
If you really think about it, most of the ‘needs’ you currently have are things that you think you need. That’s right-they are artificial needs. You didn’t need them before. Surely, you can live without them again. You should learn to rank your current expenses and figure out which you can live without if you don’t have the budget for them in future months. Eventually, you will lose your taste for these, and you can get rid of them permanently.
Discipline is its own reward
There are no two ways about it-sacrificing for the future is hard. After all, we all want our rewards now. Still, you can focus on the fact that you are trying to achieve something that most people can’t do. That, in of itself, is its own reward. You are investing in your character. You are learning how to be disciplined. And this discipline can take you far in life.