Pay yourself first

 The blog title is simple, pay yourself first...

The reason I said that is because, we've encountered many people who don't pay themselves first after they receive their paycheck/salary.
They pay their money to other people FIRST....Put it simple as soon as they get their paycheck, they pay house mortgage, pay their mobile bills, pay for groceries, shop for new shirt or shoes, traveling and so on~

After that, people will complain that they don't have enough money after the end of the month.
So they wait for the next month's paycheck and there we go again, spend, spend, spend!!

This sounds familiar??


Are you complaining that you don't have enough money every month?
No matter how you save or spend lesser, it just doesn't make a difference??

If you are, I hope this can help you, I've summed up some way to pay yourself. This is very similar to the suggestions from  financial advisers or book authors, I'm just following their suggestions as a guide.
To get started, you should first create different individual accounts for yourself.

Bank A for the money you used for your monthly expenses (expenses can be your mortgage, car loan, bills, shopping, food, groceries, fees etc).
Bank B for your savings.
Bank C for your investment purposes (even if you don't have any investment planning, save it first! You might find some alternatives for these portion in future).

So here's the percentage allocation you can distribute for 3 banks. Assuming $1000 you received, allocate $650 for your expenses, $100 for savings and $250 for investments.

Why savings lesser than investments?? Simple, how much interest does the bank pay for your bank deposits? 0.3% normal and 3% fixed deposit? Save $1000 and you get only $3, it sucks doesnt it?
You can't even buy a nice cup of ice cream!

Allocate your money to very low risk investment like Mutual Fund/Unit Trust, you can gain returns higher than 3-5% easily. Provided that you get some professional to manage your money if you're not sure how to fully manage it. (Mutual fund/ unit trust consultant can help to manage and advise).


There you go, some simple money allocation. Start practicing for 1 month or two, you will be happy to see some savings you can get from this. =))

*For professionals or prominent investors, they don't have to know this already. Well, they may have their own equation to divide their money properly.*