Paying Yourself FirstSaturday, February 18, 2006If you have read the book "Rich Dad, Poor Dad" you know what I mean by paying yourself first. If you have not read Robert Kiyosaki's book, I highly recommend it. It is not a Dad only book. I would encourage men and women to read it. What does it mean to pay yourself first? If you work for a company or work for yourself, the principle applies. That means anyone who is earning income is not exempt from this principle. It is really easy to do. When you get your paycheck, you take out an amount and pay yourself. You do this before paying any bills. Where you put the money is up to you and how much you pay yourself should be determined upfront. You can always change the amount, but change it before you get paid. So when payday rolls along, you are ready to take out that amount of money and put it into savings or some asset. The deal is that you change your mindset. Most of us have gone through life and never considered paying ourselves first before writing out the check for the mortgage, car, utilities etc. Most of us never thought about building assets. I shared some of my goals for this year in a post during January. You can dig for that in my archives. I have a goal to add $10,000 to what Robert refers to as my asset column. Simply put, I have a goal to end the year with an additional $10,000 into an account. To meet that goal, I have to decide how much I am going to pay myself each month. Make sense? It is really easy; however, it is really powerful. Paying yourself first changes the way you look at your finances completely. If you have not read the book, you can click on my link under "Recommended books" and buy it from Amazon. Robert Kiyosaki has other books that might interest you as well. He also sells a game which I want to buy. I'll write about that another time. posted at 2/18/2006 08:00:00 AM |
DISCLAIMER
Information provided on this site is for informational purposes only; it is not intended as a substitute for legal advice. The information on this site is not to be used for legal defense. The author(s) are not responsible for any actions taken by the reader or any results in the work environment. Always contact your attorney for professional advice.
Copyright © 2006 Beat Your Own Drum
0 Comments:
Post a Comment
<< Home