4 Ways to Financially Pay Yourself First


There is a common adage that says "As riches increase, the people that eat it increase", This statement has stood the test of time and has been found true in most case studies.

You are your greatest asset; Your body, mind and spirit are all you have after the stress of life has taken its toll on you. So, you need to pay attention to yourself.

The society tells you to:
  • Spend
  • Consume
We either spend to solve our wants or needs, and we should be careful to pay attention to our needs more than our wants. We should know that not all products/services should be for immediate consumption. We can learn to defer pleasure to the most appropriate time.

You can pay yourself by:
 

1. Paying off credit debt

Try to offset the debts you might have incurred; it helps to give a good credit score, prevents blacklisting by credit bureau, It prevents embarrassment and also improves your mental health.
 

2. Invest for your Retirement

Create a Retirement savings account (R.S.A.) with a reputable pension fund manager, It helps you prepare well for retirement. You can also invest in some long-term ETFs (Equity traded funds) like VOO, VGT in the stock market.
  • Add to your emergency fund: Emergencies are unexpected happenings, because life events are not totally predictable, we need emergency savings to help when the needs arise. You can consider investing in mutual funds, they can help out.
  • Add to your investment portfolio: Continuously add to your investment portfolio either by dollar cost averaging are strategic placements. 
  Never live bigger than your paycheck, It's financial suicide.

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