“Pay yourself first”
It is a phrase many of us have heard when it comes to managing our money and investing. I often post on Quora and see people ask, “What should I invest in?” or “What does it mean to invest in myself?” These are great questions, as many young people especially do not have the right answer.
Ways you can pay yourself first…
Contribute to an employer 401k and get the full company match. This has a two-fold purpose. Firstly, you are never seeing the money that is taken out so you will not miss it. Secondly, your employer match is FREE money and the easiest way to boost your return.
Establish a Roth IRA. Most individuals are eligible to contribute to a Roth IRA. If you are unsure, go to Roth IRA and see if you meet the criteria. Even a small amount of $100 a month automatically withdrawn from your checking account is a great way to add an additional retirement vehicle for the future.
Read Books. Lately I have been ordering books on Kindle like a mad man. Many of the books I read are financial related and leverage others’ experiences. The Millionaire Next Door by Thomas J. Stanley is one I highly recommend. Austin Netzley’s Make Money, Live Wealthy is another great book that offers wonderful insight into his personal journey of wealth creation. Austin does a great job of connecting with successful entrepreneurs and innovators throughout his book and illustrates their journey to success.
Your Health. Investing in yourself isn’t just about money; it is also about being able to enjoy the life you live so that one day you can reap the rewards of all the hard work you have put in. Start exercising if you don’t already. They key is starting small. Do the elliptical for 15 minutes 3 days a week. Then bump it up to four. Replace a candy bar with a piece of fruit. You get the picture. Investing in your health should be the first one listed in this post, but like many of us it often times is the last thing we think about.
There are many other ways that you can pay yourself first. Vacations, nice meals out, etc. When it comes to your finances and personal development, YOU are in control. Don’t just talk about these things, put them into action and set yourself up for greater success.
Budget Smart, Invest Wise