Comments on: Paying yourself first

By: soundofgold

soundofgold — Fri, 04 May 2007 14:20:56 +0000

I always understood this concept as keeping your living standards up to certain level ie. not forgeting to live a reasonably happy life while saving / investing – buy yourself (first) that book, movie, CD etc. which makes you happy yet fits within the “sanity” column of your budget.

By: Khyron

Khyron — Tue, 01 May 2007 03:42:00 +0000

I first saw this concept in “Wealth Without Risk” by Charles Givens. (No comments on the Givens Organization req’d; the book was still valuable.)

The idea is forced savings, and forcing yourself to live within your means. Also, it is designed to prompt you to have money stashed away that you don’t touch (essentially, an emergency account). Yet the idea is also that if you have the money available to pay bills, large expenses, etc. you will be uplifted by this notion even if you don’t use the money for that purpose. Thus, the money is a financial security blanket.

I don’t know if 10% is feasible for someone starting out or with a lot of debt, but putting away something is, while paying against the debt as well. The financial comfort and peace of having the funds available is huge; being able to watch the growth inspires you to add to it. As long as you don’t touch the money prematurely, that is.

By: Tyler Weaver

Tyler Weaver — Sun, 29 Apr 2007 18:25:46 +0000

Pay yourself first, then with the difference you can decide whether you get to eat real food, or ramen for the month?

I think if your responsible enough to not take out debt, paying yourself first is a good way to force living on less.