Paying yourself first

Hi friend, In today’s post, I will talk about the idea of “paying yourself first” from personal finance, and another interpretation of this idea that I read recently in the book, Four Thousand Weeks. The idea in personal finance is very simple, it says that the day you receive your Paycheck, you should take a portion of it, and just pay yourself, that is, put it in a savings or investment account. The reason it is emphasized to do that first is because if we don't account for it before hand, it might not happen as other things will come up. If we just think that we will save whatever is left after spending, chances are that the money will find some other use, and poor savings account won't really see much growth. Of course, there are exceptions to this rule too, where I know many people who are pretty consistent with savings, even if it's not the first thing they do with their money. But I still like the idea of automating a certain fraction of your salary to go to savings/investment as it makes sure that savings see a consistent growth, and if there is money leftover after expenses, that's even better.

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