Year after year, people in the financial world have been saying, “Pay yourself first!” Well, I just didn’t see the point. Being the kind of person who always needs to know “why” I should to do something – the reasoning behind the action – before I can bring myself to actually do it, I continually ignored this advice. Well, a few years back I got my answer to “Why should I pay myself first?” while watching a show Oprah did on becoming a millionaire. The dots connected, and here’s the picture that formed…
The WHY behind “paying yourself first” has nothing to do with the amount you save, but with the purpose behind saving it. You see, every time you pay yourself first it builds your self-esteem. It shows us on a consistent basis we are loved by ourselves.
In Both my Personal Experience and Working with my Clients, I have Learned…
- It doesn’t matter how much you start with, just start! Whether it’s loose change, $5 a pay period, or 10% of your income. The amount doesn’t matter – all that matters is that you do it.
- “Pay YOURSELF first,” means just that. Women have been conditioned to think in family terms for so long that it’s so hard for us to rethink this concept without feeling guilty or selfish. But, this is for you alone, not your husband and you, or your kids, or anyone else who comes knocking.
- You are not a bank, so do not give loans. If you borrow from it, you will actually feel your self-esteem go down a notch. It is important to NOT focus on the amount, but focus on the HABIT of “paying yourself first.”
- If you spend it, even on something special for yourself, your self-esteem goes tumbling down because you don’t have that security and support anymore – you have spent your self-love. The way this habit builds loads of self-esteem is through financial freedom and self-reliance. Save for special things in your budget, resist the temptation to steal from the “pay yourself first” account.
- It doesn’t matter where you keep it, but as soon as possible get it busy making you more money. You can start by keeping it in a piggy bank or an envelope in a drawer, but as soon as you can, move it to a retirement plan, savings account, treasury bonds, money market, CDs, or some of each.
People who “pay themselves first” are so successful, yet so few women take this seriously! With that mindset, is it a wonder why we make less money, too?
To learn more paying yourself first advice, contact Vickie Champion for a discovery coaching and consulting session.
By Vickie Champion