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Pay Yourself First

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My father's secret to financial success was to pay himself first. He would set aside a specific amount from each paycheck for long term investments. He then used the remaining amount for the household budget. The amount saved does not have be large if one is paying off bills or finances are tight

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I have followed this plan since my teens. In the days of minimum wage jobs, I might have only paid myself 25 or 50 dollars a month, but with compound interest over time it really adds up.
- Submitted by BIJOUX7 6/5/2010 in Saving Money | 3 Comments
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Member Comments

TESHIE4ME 6/5/2010 12:28:00 PM

    We are doing the same thing. A certain dollar amount out of each check goes straight to savings for our Christmas and vacation fund. My husband's car will be paid off in four months then we are going to start moving those car payments to savings, too. Then when we need another car, we will be able to buy one without a loan. I can't wait!!
HEALTHYONE2008 8/26/2010 10:23:00 PM

    I also learned this growing up
TERRI77 6/6/2010 10:56:00 AM

    David Bach uses this rule in his books. He goes on to encourage saving at least one hour of your eight hour work day to pay yourself.

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