In Thomas J. Stanley’s famous book “The Millionaire Next Door : The Surprising Secrets Of America’s Wealthy” he shares a interesting conversation between him and one of the millionaires he spoke with.
For context, Mr. Stanley understood that in order to interview these millionaires he needed to make it worth their time.
In other words, he needed to compensate, pay, or reward them in some way for showing up when they could’ve been doing something else.
And since they were already so wealthy he started by asking if they would like him to donate money to a charity on their behalf.
Because surely a few hundred dollars wouldn’t mean much to a established millionaire right? Right?
Yet the answer Mr. Stanley got from these wealthy individuals totally surprised him!
In response to Mr. Stanley’s question one of the millionaires quickly responded :
“Lucky for you I’m my favorite charity!”
And while the above quote may seem greedy at first it actually reveals something very interesting about how these individuals became millionaires to begin with.
Lucky for you this is exactly what we’ll be discussing in this blog post!
Introduction
Do you remember how it felt when that employer you dreamed of working for finaally called you and offered a job?
Can you think back to the joy of knowing someone wanted your skills and abilities to be used to make their business better?
Wasn’t that a special feeling? Without a doubt!
Yet somewhere along life’s road that newness began to wear off.
A lot of little things began to wear down all that enthusiasm.
We get used to making that same old drive to work each day. Drinking that same cup of coffee, saying hello to the same receptionist at the front desk, and continuing that daily grind also known as our “9-5” career.
In addition to feeling like a daily participant in the “rat race” , we are also left saddened by the lack of money in our bank accounts.
After paying our many bills, we feel there’s only a little money left to enjoy before Monday comes to get us again.
But what if I told you there was a way to bring back the joy and excitement?
I promise, if you continue reading I’ll tell you all about how you can fall in love with your job all over again with one simple step.
That simple step I’m referring is paying yourself first.
Paying Yourself First
Paying yourself first simply means:
Taking money from each check and setting it aside for you.
Definition of paying yourself
Let me be very clear. This money is for YOU.
Not for your car payment. Not for your light bill. Not for your student loan debt.
Why Some People Refuse To Pay Themself First
There are lots of reasons why some people refuse to pay themselves first. Below I’ll highlight some of the most common reasons.
- “I don’t make enough money to pay myself first.”
- “My bills getting paid are more important than me having money left over for myself.”
- “I can only afford to pay myself a few bucks each check so I may as well put that towards bills. It’s just not worth it.”
The Ugly Truth
The reason most of us “can’t” or don’t pay ourself first is because of our own problems.
Since we don’t have a budget we overspend in areas we shouldn’t. That “extra” money is money that could be put towards our favorite charity (ourselves).
“When we believe our bills are more important than our happiness and well-being, we are subsequently admitting we live to work as opposed to working to live”.
Lastly, feeling that it’s only a “few bucks” shows how little you value your time. Even if it’s only $5 a check, that’s still money you earned with hours or your life.
Breaking The Cycle
Even as I write this post I realize not everyone will take this advice.
Some will fall prey to the exact things I listed above.
The power of tradition and “how it’s always been” in their life will deter them from experiencing a new level of financial freedom.
But then there are also those who want to make progress in their financial lives.
So now I’m going to issue you a challenge, and I trust you will rise to the occasion by accepting it head on.
The Challenge
1. I want you to create a budget. List all your bills, payments, and subscriptions.
2. Eliminate anything that’s not absolutely necessary. (Trust me, we are going somewhere).
3. Get a firm idea on how much you’re bringing in weekly, bi-weekly, or monthly. However you do the math, the point is you want to know how much income you’re generating.
4. After you’ve assured all has been accounted for, look at what remains. This is how you determine what you want to pay yourself.
If you’ve taken the time to complete each of the steps in the challenge, you should have no worries in finding money you can pay yourself each and every check.
How To Use The Money
I have been following this advice of paying myself first for quite some time now.
Additionally, I’ll be the first to tell you that the way I use that money has changed over time.
A few examples are:
- Having a second emergency fund
- Building my ideal wardrobe
- Starting a business
- Starting this blog
- Buying collectibles
- Being generous to others
The main point I’m trying to make here is:
This money should be used in a way that brings you happiness, and makes the effort you put into your job worth it.
If you follow these steps, you’ll fall in love with your job again. How so?
Because your job is how you receive your income. And your income helps you experience things that bring happiness.
Money does not equal happiness. But it can put you in position to do things that bring happiness such as giving.
Conclusion
Hopefully by this point in the blog post you understand the importance of truly looking out for yourself.
Rather than give away your hard-earned money to everyone else now you understand the importance of making saving a priority.
Smart people save money first, and figure out how to spend the rest afterwards.
The average person spends first, and saves whatever is left. Don’t be average my friend.
Until next time, yall have a good one.
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