Pay The Most Important Person First
Take a moment to ponder who is the most important person in your life.
Some of you have probably come up with your spouse or your children but I would like to put forward that you yourself are the most important. After all if you were not here, your life would not exist.
My next thing for you to think about is how many people pay you each month. I guess that this will be a little easier for you to answer. Most of us are only paid from one place, our employers.
Next thing is how many people do you pay every month. That will take a lot more working out. Let us start with the mortgages company or landlord if you rent your home. Then there is the electricity company so that you can see what you are doing, the gas provider so that you can keep warm and provide a hot meal for your family. Then there are the supermarket and local shops where you buy your groceries every week. These things are the essentials in your life.
You probably also need to pay for some transport to get to work. That will either involve public transport, or if you have a car, there will be a few more people that you pay. Firstly the government who charge you tax to have a car, then the insurance company just in case some other idiot does something silly in your way. You have to pay the garage for repairs that need doing and new tires to buy. Then the biggest of all you pay the oil companies a fortune every time that you fill up your tank with gasoline.
Now let us get onto the people that you pay that are maybe not as essential. Here we would include the morning paper seller on your way to work, the coffee shop mid morning, the fast food restaurant for your lunch and the shop to buy your muffin in the afternoon.
In the evenings and at weekends you probably go to the ball game or do other socializing. Have you ever considered how much that costs you? It is amazing when you sit down and work it out.
Why are we paying all these people who we do not know when the most important person on our life is ourself?
Let us commit ourselves to putting a little bit of money aside for our own future. It can start with as small as you can afford, then we can increase it as our income goes up. Most of us when we get a pay increase find ways to spend the extra money.
We will not do that however, we will budget to saving 50% of the increase into a savings account before we notice it. We will not miss it, we have been living happily without it before and we will still have half of the raise left. We will thank ourselves at some time in the future when we have an emergency. Others in that situation will probably have to go out and get a loan. We will have the money already in our emergency account.
Promise me that you will start today if you can but at least you will start to pay the most important person in your life next time you get a pay increase.
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Making a point to save for yourself is so important. This is a great reminder to not forget ourselves.
It may seem hard at first but after time it becomes easier. I am so glad that we save in our house, it has come in very handy many times. 
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Hi Trevor,
I completely agree that paying yourself first is very important. And that's a very wise decision to commit half of any pay raise to savings. We're all hearing about the trouble we're in with social security. The only thing you can count on is yourself when it comes to your future. I've always been a saver.
This is also a conversation everyone that's in a relationship should have with their partners because if you're not both going for the same goal, there will be problems! I've seen this happen more than once.
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Twitter: paulreimers
says:
I have heard the phrase "Pay Yourself First" before, but I really enjoyed your post showing how important it is to do that.
I reminded me of the story from First Thing's First by Stephen Covey, where if you put the big rocks in a jar, you can fit smaller and smaller rocks in and finally water. If we don't put the big things in first, they won't fit!
As Covey says, "The main thing is to keep the main thing the main thing."
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Hi Trevor.
Thanks for sharing your post ! Yes, I agree with you that paying oneself first is the most important thing to do. Best method to pay yourself at least 20% of your take home is a great way to make yourself feel important
It is not advisable at all to think of fixed commitment first. Never !
You have shared a great post to everyone. This should be taught at young age
Thanks
Pearly
PearlyPQ recently posted..Scalar Energy and Cancer – DNA
I could not agree with you more. You have to put some money aside for yourself and your future. To many times we are obsessed with paying all of our bills, mortgages, friends we borrow from, and any business we associate with. We can not forget about numero uno (that is us). Make a small donation to your self and your future each paycheck.
I remember reading this in The Richest Man in Babylon, but wish I had taken this advice when I had my old brick and mortar store. Pay yourself first and put away 10%. This is sometimes easier said than done but is important to learn.
Twitter: lynnjonesie
says:
Hi Trevor,
It seems like many think it is not worth it to save a little at a time. I think of The Slight Edge by Jeff Olson and I believe his theory works here too. Even if we put aside a small amount, over time it will make a difference. And like Jeff says, "It's easy to do and easy not to do."
Thanks for the admonishment to pay ourselves first! We will be glad we did.
All the best,
Lynn
Lynn Jones recently posted..Communication- What’s Important to You
Hi Trevor,
You make some great points here. I was a student of Phil Laut and Leonard Orr back in the 80s. Phil, before he had money, used to get all his bills and put them in a drawer and then pay them once a month. That we he didn't spend all his time thinking about them! If someone demanded payment he would ask, would you like some, or get nothing – your choice.
I used that when I got into debt and it worked fine. Concentrating on what is good in your life creates more of it.Setting money aside is great too. It creates a different consciousness.
I am getting back to look at my thoughts on money after reading this!!
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This is a great post because it gets people to think about their money and where it goes.
I am not sure if you have read the book "The Richest Man in Babylon" but it is a short but fantastic read. I try to live financially by the principals that it lays out and I truely have more money in my pocket, more money to spend and I save more money than I did previously.
Your posts helps people to focus in much the same way.
Thanks
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Thanks Melissa. I have read that book and I recommend it to anyone.
First of all paying yourself is very necessary. You are right. So, it is a very good idea to commit half of any pay raise to savings.
Trevor, you are absolutely right. I had never thought of taking that pay raise and saving/investing 1/2 of it. Paying yourself the 10% is something I have even started my kids on, as little as they are. Makes a huge difference very quickly.
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Your kids are so lucky, I wish all children could get some money management training.
Twitter: HansSchoff
says:
Trevor, what a great way to get that point across, I had never thought of it that way but such a powerful way of explaining that concept, ruling out and showing how we seem to put virtually everyone else at the top of the list before ourselves, when in reality each of us is the most important person in our own lives, as far as ensuring who we pay first. Great post!
Hans Schoff recently posted..Money Making Secrets For Creating Wealth
One should always make the priority list so that the people whom we need to pay first should be given the money first and then the others should be considerd
Hi, Trevor,
loved your observations on this matter.
I always make sure to pay the bills first, and then with the rest of the money I see what to do…I don't want to owe money to anyone, so that is why I first make sure to pay to the electric company, gas distributors, water supply…then the food…and whatever is left, is used for the family. Not much left to spare, anyway.:)
Kristina L. recently posted..Free Card Making Coupon Code
It sounds as though you have sorted out a sensible approach there Kristina.
Have no a lot of cash to buy a car? You not have to worry, just because that is available to receive the home loans to solve all the problems. Thus take a short term loan to buy all you want.
Twitter: AnnCapatino
says:
Hi Trevor,
I love this post! You kinda went in a round about way to say — SAVE! And, it works. You know if we are able to put aside just $10 to $20 per month, it is amazing how much we will have in 5 or 10 years. The best thing to do is to begin at a very young age — consider yourself a debtor and pay that money each month. Once that habit is formed, you are on your way. Thanks so much for sharing such an important topic.
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That’s a great idea you have offered there Ann and you are right, I was encouraging people to save.
I truly love this posts! People must realize their self-worth.
First of all paying yourself is very necessary. Setting money aside is great too. It creates a different consciousness.Thanks for sharing this.
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