When you pay yourself first every month you are paying your way towards financial freedom. Paying yourself first is a wonderful thing to do in personal finance.
1. The savings habit: The earlier you start to save the more you will be able to save. Time and compound interest work wonder for you. This is the best habit as far as money is concerned.
2. Free from debt: The most important thing is that when you can pay yourself you are spending less than your income. It means you will stay out of debt. Debt is the most dreadful thing in matter matters
3. Emergency fund: Life is unpredictable, that is why it is necessary to save for an emergency fund in case you are out of work or in serious illness. The fund will be able to take care of your expenses for a couple of months
4. Big-ticket item: Isn’t it good to get a big-ticket such as a flat-screen TV without paying extra. Save enough and pay for it in cash by shopping around to get the best deal.
5. Down payment: You can get your dream car or your dream house when you have saved enough to pay for the down payment.
6. Education and retirement: It is a farsighted move to save and invest so that you can send your children to higher education. It is also a great way to save early for a care-free retirement.
7. Wealth building: The starting point to build your wealth is when you can pay yourself first. The amount will snowball over time and you can maximize your return by prudent investment to make your money grow.
When you pay yourself first you get paid by yourself forever.
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