Do You Pay Yourself First?
@jrlcentral (2605)
Roxas, Philippines
October 8, 2015 10:21pm CST
Every time you receive your salary, commission, or other income, what do you do?
Do you budget it, first according to your monthly expenses, e.g. bills, credit card debts, food, clothes, etc..) or you pay your self first?
Pay your self meaning, you set aside a small percentage of your income, let's 10%-30%, for your savings and investments, then spend the rest.
Personally, I have been living within 70%-80% of my salary for quite a long time now. the 20%-30% goes to my tithing and savings. For several times though, we had some emergencies in the family, so I had to use my savings during those times. But having the habit of saving 20%-30% a month, I easily recover the amount. Now I started investing the stock market using my savings.
How about you? Have you tried paying yourself first?
6 people like this
9 responses
@TiarasOceanView (70022)
• United States
9 Oct 15
It is hard to do at this time to even save, but after i get my debts paid off, i intend to start saving again. I am pretty good at saving and not spending.
2 people like this
@jvincent_129 (4994)
• Philippines
9 Oct 15
One thing I do is treat myself with food that I love to eat. I dont mind spending a lot when it comes to food.
1 person likes this
@jrlcentral (2605)
• Roxas, Philippines
9 Oct 15
That's a good plan. Pay off your debts first. of course, don't get into more bad debts. ;)
2 people like this
@SIMPLYD (90722)
• Philippines
9 Oct 15
Since we still have a daughter whom we send to her internship in medicine ,we can hardly save . But i do have a tin savings can in which i would drop 100 or 500 or even 1000 every payday . No fixed percentage or amount . However , i always have something for myself of course .
2 people like this
@hereandthere (45645)
• Philippines
9 Oct 15
@jrlcentral does tithing really work?
1 person likes this
@jrlcentral (2605)
• Roxas, Philippines
9 Oct 15
I started with about that amount. 100 - 500 a month ( I was receiving only about 7,000 per month). But doing that, I got myself disciplined enough to live within my means.
So when I got a better paying job, I was able to save 10%-20% plus my tithes. The principle is, If I could live comfortably with 7000 a month, and save some, I could easily save more with a higher income.
But course, I admit, sometimes living within 70% is not enough. That's why I have to look for additional source of income. :)
@jrlcentral (2605)
• Roxas, Philippines
10 Oct 15
@hereandthere Yes it does for me. (the following reasons may make me sound like a preacher, I'm not; but there's no other way to do this)
1) By tithing and doing it first - means to show that your no.1 priority is God, who is the source of everything.
2). By tithing you are practicing generosity; and God blesses those who have generous heart. Or to put it in non religious context, the more you give, the more you receive.
3) By tithing - you are sharing a part of what you have to those who are in need.
But one important thing that you need in order for tithing to work is, you really have to believe in it. Give because you LOVE others, that's why you want to share your wealth. Don't give just because in the back your mind, you want something in return.
;)
2 people like this
@owstalaga (4707)
• Philippines
9 Oct 15
Well I had planned on starting tithing but I still have not done it yet. Which reminds me, next pay day I should do it. Then off I'll go with my risky investments! Woohooo!!! 
My problem is usually I get to use up all my savings, one way or the other. It's always because of family or myself. Tsk tsk. But now I am changing all of that. Investments are indeed the way to go. Must not forget God too so I will be tithing this coming pay day. I must not forget it. 
It's nice you don't have the same problem as me. I'm hoping to get rid of this financial problem asap!
My problem is usually I get to use up all my savings, one way or the other. It's always because of family or myself. Tsk tsk. But now I am changing all of that. Investments are indeed the way to go. Must not forget God too so I will be tithing this coming pay day. I must not forget it.
It's nice you don't have the same problem as me. I'm hoping to get rid of this financial problem asap!1 person likes this
@owstalaga (4707)
• Philippines
10 Oct 15
@jrlcentral Ack, my bank account always goes back down to zero! Heck sometimes I think I should not have a bank account if it's just gonna get back down to zero after a few months. Oh well... I am a better money manager now I think so I will stop making the same mistake again!
1 person likes this
@jrlcentral (2605)
• Roxas, Philippines
9 Oct 15
Yeah, that happened to me several times too. There are several times that I have used up my savings. Until I started investing. At least I won't be able to touch it for the time being. But of course I leave some in the bank for emergencies.
1 person likes this
@jrlcentral (2605)
• Roxas, Philippines
10 Oct 15
@owstalaga Well.. I didn't have a bank account for so many years, until lately. I had to build up my self discipline first when it comes to managing my finances. I got the ideas from the Truly Rich Club. PM me if you want to know more.
1 person likes this
@mrdprince (293)
• United States
9 Oct 15
It is so hard for me to set aside and keep it aside. We seem to have so many emergencies. I don't spend foolishly on myself but I have family members who need help. What's a guy to do?
2 people like this
@jrlcentral (2605)
• Roxas, Philippines
9 Oct 15
Perhaps, the best way to help others when it comes to money is, teach them how to manage their finances more effectively. I know this is easier said than done. It took me years before I was able to start investing. But I started saving at small amount. With discipline, I was able to save as much I am saving now.
@jrlcentral (2605)
• Roxas, Philippines
9 Oct 15
@wiLLmaH Thanks for the encouragement. ;)
1 person likes this
@jrlcentral (2605)
• Roxas, Philippines
9 Oct 15
Wow! To live in 50% or less is one of my long term goals. That would be great.
1 person likes this
@NeldaHoxie (1381)
• United States
9 Oct 15
That's certainly good advice. However, sometimes life is just too hard to do that. I've had 5 surgeries and many infections in 3 years. The medical bills have been mind numbing. I have disability insurance and I have good health insurance and it wasn't enough. Savings had to take a backseat to life.
2 people like this
@jrlcentral (2605)
• Roxas, Philippines
9 Oct 15
I understand... that's why my financial mentor also suggests to have an emergency fund, which I have to take from the 20%.
I hope u'll get better very soon.
@atv818 (1980)
• United Arab Emirates
9 Oct 15
Food is one thing that I really like a lot and that shows on how I really look physically . Eating is really something I cannot live without. Rewarding myself with it is simply unavoidable.
I used to reward myself with material things before but now that my finances are down in the dumps, food is the simplest way of letting me enjoy my life.
Eat on!
1 person likes this
@jrlcentral (2605)
• Roxas, Philippines
10 Oct 15
hmmm.. instant gratification?
Well.. that's the reason my waist line is getting bigger hehe.. One thing that I need to control
@cahaya1983 (11116)
• Malaysia
9 Oct 15
I set aside a saving portion, but I try to be realistic so I don't allocate a fixed amount or percentage for this and that. It all depends on my current needs and obligations.
1 person likes this
@jrlcentral (2605)
• Roxas, Philippines
9 Oct 15
well I started small.. and nothing fixed, until I set myself a goal. It's not easy, but the goal got me disciplined. I admit, living on 70% is not enough sometimes, so I have to find additional source of income to compensate.
1 person likes this
@SHARINGPARTHA (172)
• New Delhi, India
9 Oct 15
Good post! I try to first fulfill my saving targets after I receive my salary, then I go for other commitments.
1 person likes this
@jrlcentral (2605)
• Roxas, Philippines
10 Oct 15
Thanks.
That's the way to do it, Partha. The formula is Salary-Savings=Expenses. :D
