Pay Yourself

10%, it’s a small number when you think about it. For you to be financially successful you will have to pay yourself and 10% is what it takes. How do you pay yourself? That is a good question, because often times we find ourselves counting down the days till our next paycheck. This is where the whole idea of rationing or allocating our resources came from in the first post. There is a simple way to pay yourself it is called direct deposit. Most employers offer this service, and some of you may already use this. Instruct your employer to deposit 10% of your paycheck into what we will call your 10% fund. If you are just starting off you may simply want to put this money into a savings account until you have the money to open yourself a mutual fund (don’t worry we will cover this really soon). This 10% is such a small number you wont even notice that this money is gone. Think about it, you only need a dime out of every dollar you earn. You probably see dimes on the ground and walk on bye without picking it up. Start your 10% fund this week it seems like 10% is so small how will it make a difference, do it this week and you will be thanking me ten, fifteen, and twenty years for now, this small number can be the difference between prosperity and financial comfort, or financial worries down the road.