What does Rich Dad, Poor Dad Author Robert Kiyosaki have in common with the federal government’s Consumer Financial Protection Bureau (CFPB)?
Both know the power of 🔑💰 Pay Yourself First: The Secret to Financial Success 💰🔑
What is “pay yourself first”?
Today, I’m sharing with you the wisdom from two influential sources that have shaped my mindset: Kiyosaki’s “Rich Dad Poor Dad” and the CFPB. Well, at least one…
In the book, Kiyosaki highlights the importance of changing our perspective on money. Rather than working for money, he encourages us to make money work for us. This is a thought and theme throughout all of his works. One of the fundamental principles he highlights is paying yourself first. But what does it mean?
Paying yourself first means setting aside a portion of your income before paying any bills or expenses. It’s about prioritizing your financial well-being and future. Why? 3 short reasons:
1️⃣ Build a Strong Financial Foundation: By paying yourself first, you’re establishing a solid financial foundation. It ensures that your financial goals take precedence over other expenses. It sets the stage for financial security and peace of mind.
2️⃣ Cultivate Wealth-Building Habits: When you pay yourself first, you instill discipline and create a habit of saving and investing. By consistently saving and investing, you open doors to opportunities for growth and wealth accumulation over time.
3️⃣ Protect Yourself from Financial Uncertainty: Life is full of unexpected events and challenges, which can be challenging. Paying yourself first, or establishing an emergency fund, will provide a critical buffer when things become difficult.
To really drive home the message, even the US Government concurs. The CFPB supports the notion of paying yourself first. Their research shows that individuals who prioritize saving, even small amounts regularly, are more likely to improve their financial well-being over time. It’s a simple yet powerful concept that can transform your financial life.
Plus, it compounds your success!
How can you start paying yourself first? It’s simple really.
Begin by setting a specific percentage or amount from your income that you will save or invest. Treat it as a non-negotiable expense, just like any other bill. Automate this process by setting up automatic transfers to a dedicated savings or investment account. Over time, you’ll be amazed at the progress you can make.
By making it a priority, you’re taking control of your financial destiny and paving the way for long-term wealth and success
Doing this changed my #GoldenHandcuffs into tools that allowed me to become independent from my job and paycheck. You can do it too…
What did you learn when you started paying yourself first?