Best way to pay yourself first

Don’t have enough Money to Invest? Let us change That.

Do you feel like you never have enough money to invest? What If I told you, you do and it all starts with how you look at money.

Have you ever heard of the term pay yourself first? It is important that you find money from your salary to invest in yourself, just as you would pay any other expense, such as your utilities, groceries etc. Once you have cash, you will find a reason to spend, as expenses will always surface, especially now with the spike in prices resulting from inflation (which we spoke about in our Money Fixes article, shared last week)

Here’s the golden rule:

50% of your income is the maximum for NEEDS (bills & utilities)

30% of your income is the maximum for WANTS (splurges and fantasy items)

20% of your income is the minimum to Savings + Investments

Here are some tips to support paying yourself first:

1. Set up an automatic salary deduction to transfer money to an  investment account monthly

2. Create a monthly budget to ensure you always have some money to invest. If you see where your expenses exceed your income, then that is a red flag and needs urgent attention. To correct this problem, see where expenses can be cut, so that you can find money in your budget for investing. Remember, we do not work to live just for today. There will come a day when you no longer receive a monthly salary, and that is when the investments that you made become even more important, by allowing you to live a quality life.

3. Just start! These are two very powerful words, even if J$5000 is all you have to start, it is still a step in the right direction. As the saying goes, something is always better than nothing at all. Additionally, you will be quite surprised at what J$5000 can become when it is being invested consistently into the right type of investment over time.

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