Out of all the personal finance tips I can give you, this might be the most important.
I originally got this idea from Robert Kiyosaki’s Rich Dad, Poor Dad, though I've heard it said by many people. Kiyosaki says to ensure you’re saving and investing the right amount of money every month, you must pay yourself first.
This tactic works because it ensures that you’re following your strict financial saving and investing plan, which I hope you’ve laid out. My personal plan is outlined in this post.
Most people just go through the month, paying their bills as they come. They tell themselves, "if I have any money leftover this month, I'm gonna save it!" The problem with this is that there's never any money left at the end of the month! There's the $400 on eating out, the $200 on new shoes and clothes, and the $150 on alcohol... we'll try again next month.
Instead, pay yourself at the beginning of the month, before you've had the chance to go spend a bunch of money on things you thought you needed.
Before you pay your rent, your bills, your debts, your groceries, gas for your car, etc… make sure to pay yourself first.
At the first of every month or as soon as you get paid, automatically put your set percentage of income into investments and savings. For me, it's 30% and 15%, respectively. Then at the end of the month, if you have some cash leftover, you can go out to a nice dinner knowing that you already saved and invested your set percentage.
You are important and your future is important. Do the simple task of paying yourself first. Your future millionaire-self will thank you for it.
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