Teropitka Business and Finance

Archive for the ‘Personal Finance’ Category

Pay yourself first is a council proposed by several authors and experts in personal finance is to allocate a portion of proceeds to a stock savings before making any payment, the more urgent it is or even when it seems certainly not could meet him.

For example, if a person has set aside each month 10% of total revenue, according to the idea of paying yourself first, that person must meet the savings before paying any service tax or debt, even urgent which is or even if you think that then could not meet them.

The pay yourself first allows us to acquire the discipline to save (and thus meet our financial targets), but also where the money is not sufficient for us to make other payments, requires us to strive to devise new ways to get more money.

Self paid automatically

A word of advice related to the idea of paying yourself first is to make this payment automatically, that is, making our stock of savings is made up of a savings account at the bank, and that the money be deposited in it every month, is done automatically without us take the trouble to do so.

To do so, if you work for a company, we could approach the area of benefits and ask them to deduct a portion of our paychecks and deposited in our in our savings account or, in any case, ask that all our paychecks deposited directly into a checking account and then ask the bank to transfer a monthly sum of money in the account to our savings account.

Or, if you have income sources other than employment, we could open a checking account, and then ask the bank each month to transfer a certain amount of money from this bank account to our savings account.

The same pay us automatically, allows us to meet our savings plans without falling into the temptation to spend before the money we save, and without even having the need to be disciplined.

The idea of paying yourself and do it automatically applies mainly to form a bag of savings which can then be used to invest, however, this idea can be applied also for other exchanges form of savings or make other payments, example, to form a bag in case of emergency savings, saving to buy a home, making payments into a retirement account, make payments on a mortgage, making payments of any significant debt, etc.

And in the case of automatic payments can also create automated systems to make frequent payments, including payments for services, and so stop worrying about it, to avoid wasting time on it, and achieve more efficient management of our finances personal.

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