Financial Friday Viv-e-o
Pay Yourself First: You’re worth it!
Are you having difficulty saving enough for a rainy day or for your retirement?
You are not alone, saving is a struggle for most Americans.
The #1 way to build an emergency fund and retirement savings is to use The Pay Yourself First Method. Save first and spend what is left over.
To be a successful saver, you must automate your savings and treat yourself as the most important bill you pay each month. Saving for an emergency and retirement is not a choice, it is a necessity.
If you are not contributing to your savings and retirement accounts each year, then what do you have to show for all your hard work? A pile of receipts and meaningless stuff.
I can hear your response now…but Sharon, there is usually nothing left at the end of the month. Well, you are right, as studies show you will always spend what you have left over. So, if you have less leftover, you will spend less on unnecessary expenditures.
To create a Pay Yourself First mindset you must begin by flipping your thinking. Tell yourself “I worked hard for that paycheck and I should pay myself before giving my money up to all other bills and discretionary spending.”
Although this concept is simple, it can be hard to begin to implement.
Apply The EPPIC Method™ to ensure you Pay Yourself First:
- Start by EVALUATING your monthly income and essential living expenses. The difference between these numbers is called your discretionary income.
- PLAN to contribute to your retirement plan. Automate your savings through payroll deduction or by setting up an auto-transfer from your checking account to an IRA each month. This makes you, your most important bill.
- PROTECT your retirement savings by also adding to an emergency fund and then spend your remaining discretionary income.
- INVEST time to evaluate your cash flow each month and make sure to invest your savings wisely.
- Having a COACH holds you accountable, teaches you ways to improve, and inspires and empowers you to reach your goals.
Create an EPPIC™ future for yourself, you're worth it! Current clients and future clients, schedule your coaching call so we can show you how to apply The EPPIC Method™ to your cash flow, helping you to Be More Healthy, Wealthy and Wise™.
For more information, check out our Cash Flow Process: Debt / Cash Flow Analysis
P.S. You should also apply the “Pay Yourself First Method” to your health by exercising first thing in the morning. If you wait until the end of each day things happen and it is always easy to make an excuse. Plus, giving yourself a dose of endorphins first thing in the morning helps you Be More Healthy and Happy throughout the day so you can reach your peak performance.