The most important rule to build wealth Pay yourself first

The most important rule to build wealth Pay yourself first
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We show you exactly how

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The secret to being truly wealthy is to pay yourself first, before paying anyone else – you deserve it!  This is the most important rule to build wealth. It’s pointless to earn a lot of money and to spend it all. Let your savings work for you. If you want to build real wealth, then your money must work efficiently for you through smart investments. But, the very first step that you should take every month is to save a fixed percentage of your income for yourself before you pay anyone else. If you don’t do this, you are not working for the benefit of yourself or your family, but for the benefit of numerous creditors.

Decide right now that you have a greater responsibility towards yourself and your family than to anyone else. Be ruthless and non-negotiable and save anything between 10% and 30% of your monthly income for yourself. Only then, should you decide how you will pay all of your creditors.

Don’t be concerned if your current budget doesn’t balance and you think that you will never be able to save 10% of your income.

Take control of your life

Paying yourself first from your income is the only way to take financial control of your life. Time and again, we’ve seen how successful it’s been, in practice, when you pay yourself first each month and then pay your creditors. Opportunities suddenly appear that can be used to balance your monthly budget. We attribute this to the fact that if you’re positive and determined when it comes to your money matters, then you’ll be surprised how solutions that previously seemed impossible
suddenly become a reality.

It’s easy to pay yourself first if you have your own business. If, for example, you decide your monthly withdrawal should be $3 000, then you simply transfer $300 (10% of $3 000) to your savings account first. You can then set aside money for your living expenses and pay your other creditors.

The most important step

The most important step to building wealth is to constantly remember that you are rewarding yourself first for all your hard work, and that all other obligations can be settled after that.

You are mistaken if you think that you should pay creditors first and you’ll struggle to build wealth.
We have never heard of a creditor who was not willingly to receive a reasonable amount in settlement of a debt. Obviously, they won’t be prepared to grant you further credit until you’ve settled the outstanding amount. But that doesn’t matter, as you’ll be operating on a cash basis from now on. And you will spend this cash ingeniously.

Save 10% of your income

Realize that it doesn’t matter how much you earn, whether it’s a large or a small amount, the 10% savings plan really works. By saving 10% of your salary each month, you’re applying an important rule that everyone should live by: It’s not how much you earn, but how much you save that builds
wealth!

Final thought

Deducting 10% from your income or profit is one of the golden rule of creating wealth. Every person is entitled to be compensated for his hard work. That applies to you as well. The 10% rule is one of the important rule of building wealth for yourself. Apply it now.

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