Pay yourself first

Pay yourself first


Many people declare that they cannot save money to invest. They live according to the following mathematical equation:

Salary – Household Expenses = Funds for Investing

Essentially investing is seen as an afterthought … “we’ll live for the present and then maybe think about investing for the future.”


So how about trying a new way of thinking? … pay yourself first. Just rearrange the equation thus:

Salary – Funds for Investing = Household Expenses

Arithmetically nothing has changed (we used the commutative property of numbers). But mentally much has changed. Now we are saying that we start with our salary and take out the money that will be invested. What remains is what we live on.


Try thinking this way. Try setting up your finances to always take out the money that you will invest.

Good luck !!