Put Yourself First After Payday

Why Paying Yourself First Matters

We’ve all felt that rush when payday finally hits. You see the money land in your account, and immediately, your mind races through all the bills, expenses, and maybe even a little something nice for yourself. But let me stop you there for a moment—before you pay anyone else, have you thought about paying yourself first?

Yes, this again. I know, I know – I've written an article with this title before. But hear me out! I can't write enough about this topic because it's just that important. And yes, I may repeat it again (and again) because I want everyone to hear and read about it. Why? Because it's a century-old secret that, frankly, isn't said enough.

This idea changed the way I think about money. After reading The Richest Man in Babylon and Rich Dad Poor Dad, I realized that I wasn’t really taking care of me in the way I should. I was paying everyone else—bills, groceries, loans—but not setting aside anything for myself. And that’s when it hit me: I had to make myself a priority if I wanted to see my money work for me.

What Does Paying Yourself First Mean?

Now, I know what you might be thinking: "I already pay myself when I buy that pair of shoes I’ve been eyeing or when I book that weekend getaway." But here’s the thing—that’s not what I mean by paying yourself. Those things are great, don’t get me wrong, but they’re rewards, not investments.

Paying yourself first is about setting aside a portion of your income before you even think about bills or any other expense. It’s about saving and investing that money—putting it into something that’s going to grow and earn you more over time, whether it’s a money market fund, stocks, or a business. You’re making your money work for you instead of working all your life for money.

And here's something important: once you set that money aside, don’t touch it unless you’re moving it to a better investment. The goal is to grow it until it can sustain your lifestyle without you having to work so hard. Imagine that—having the freedom to do what you love while your money is doing the heavy lifting for you.

How I Learned the Power of Paying Myself First

I remember reading The Richest Man in Babylon for the first time. One of the simplest but most powerful lessons was this: “A part of all you earn is yours to keep.” It sounds so obvious now, but back then, I wasn’t doing that at all. I realized I was spending every shilling and wasn’t keeping anything for my future self—or rather, for investments that could take care of me later.

After that, I started small—just 10% of my paycheck. It wasn’t easy at first. I had to say no to a few things and make some sacrifices, but the difference was life-changing. Suddenly, I was building a little nest egg, something I could depend on. I wasn’t just living paycheck to paycheck anymore.

Then I came across Rich Dad Poor Dad by Robert Kiyosaki, which took things even further. I realized it wasn’t just about saving; it was about building something with those savings. Paying yourself first means investing in assets—things that put money back into your pocket. Whether it’s starting a business, putting money into stocks, or saving for something that appreciates over time, the point is to grow what you set aside.

And let me be clear, this money that you’re paying yourself is not your emergency fund. That’s separate. Your emergency fund is there for life’s unpredictable moments, but your "pay yourself" money is meant to stay untouched and grow. It's the seed that will eventually blossom into something that can support you long-term.

How You Can Start Paying Yourself First

I know this might sound challenging—especially when you’re dealing with bills, rent, and everything else. But trust me, you can start small and make it work. Here’s how I did it:

1. Pick a Percentage: Start with 5% or 10% of your paycheck. Transfer that amount into a separate savings or investment account as soon as you get paid. Don’t even give yourself time to think about it—just do it.
2. Think of It as Non-Negotiable: Just like you have to pay rent or your electricity bill, this is something you must do. It’s a priority because you deserve to take care of your future self.
3. Automate It: If you’re like me and find it hard to remember or you’re tempted to spend, automation is your best friend. Set up an automatic transfer every payday so you don’t even have to worry about it.
4. Don’t Touch It: The only time you should touch this money is when you're moving it into a better investment. Let it grow and compound over time—this is how you build wealth that can take care of you.
5. Start Small and Build: I know 10% might feel like a lot right now, so start with 5% if you need to. Once you get comfortable, increase it bit by bit. You’ll be surprised at how quickly it adds up.

Why This Matters

Paying yourself first is a simple habit, but it makes a huge difference. I used to think I didn’t have enough to save or invest, but I was wrong. It’s not about how much you earn; it’s about what you do with it. The moment I started prioritizing myself, I felt more in control of my money—and my life.

And here’s the best part: you don’t have to be rich to start. Everyone can do this, no matter how much you make. It’s about building a habit that takes care of you now and in the future. Because at the end of the day, you don’t want to be working for money your entire life. You want your money to start working for you.

Appreciate the Small Steps

One thing I’ve learned is to appreciate small steps. I’ve heard people say things like, “Why bother investing if it’s only going to make me $70 a year?” But here’s the truth: you have to start somewhere. If you never start, you’ll never grow. And that $70 will add up, especially when you keep topping up your investments every month and let the magic of compounding work in your favor.

The small beginnings might not seem like much now, but over time, they’ll transform into something bigger than you ever imagined. So don’t despise where you start. The important thing is that you’re on the journey.

Key Takeaways

• Paying yourself first means setting aside money for savings and investments every month before anything else.
• This money is meant to grow and work for you, not to be used unless you’re moving it to a better investment.
• Your "pay yourself" fund is separate from your emergency fund—it’s all about building long-term wealth.
• Start small and appreciate the process, because every bit adds up over time.

Final Thoughts

I know it can feel overwhelming, but trust me, this is something you can do. Start today, even if it’s just a small amount. Your future self will thank you, and sooner than you think, you’ll start to feel the freedom that comes from making your money work for you. You’ve worked hard for that paycheck—now make sure you’re putting some of it aside for you.

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