If someone asked, "How frugal and responsible are you?" how would you respond in all honesty? Do you put aside 10% of your income? Do you have an IRA or a 401k? If so, how much do you put into it? How much do you spend on stuff you want, versus stuff you need? Everyone will have a different answer to that question, of course, but for the most part, most of us don't save as much as we should, and sometimes it's simply hand-to-mouth. There are ways to cut corners, of course, but sometimes the best way to change our spending habits is to change our perspective. One way to do that is by embracing the concept of "pay yourself first." "Pay yourself first" is a slogan, of course, but if you actually embrace it you will be putting yourself on a firmer financial footing.
"Pay yourself first" is a pretty easy concept to understand: basically, when you get paid, treat yourself and your long-term goals and security as you would any other creditor. So, rather than paying off all of your real bills, and then spending the rest, "pay yourself first" and you'll be developing a very good habit that will benefit you immensely in the long run. People who embrace "pay yourself first" will make deductions from their paychecks automatic and automated. They will make more mortgage payments than they have to (if they can). They will remain at the same standard of living should they get a raise it's so easy to think you can upgrade to a new and more expensive apartment, for example, when you get a raise. You can, of course, but your margin of savings remains as thin as ever, whereas a bump in revenue with your outlays remaining the same could really let you get ahead.
To learn more about "pay yourself first," be sure to consult with a financial advisor or other money manager so that you can pay yourself and your dreams, goals and future security first.
