Rebuild Your Credit with a Self Loan or Credit Card!
Pay Yourself First:
The goal of Pay yourself First thinking is going to help you too
Gather Investment Money
Position Yourself for Success
Eliminate Money Problems
The Corona Pandemic has been great financially for many people who were positioned to take advantage of it. But for others it affected them in adverse ways. Hitting them in the wrong place at the wrong time.
Even for those who's income did not change during the Shutdowns and lockdowns over the past 9 months and counting. They may find it more expensive to live their present lives than it was to live in the pre pandemic world.
Due to costs like family entertainment, divorce, loss of assets, and other complications.
Even so this is a great time to incorporate some long standing wisdom I heard of about 30 years ago from an older woman. She said you know you have to pay yourself first. I did not know how profound it was when I heard it.
I kept hearing over and over again after that. But I have to be honest. I have never used it until now.
So what is Pay Yourself first. Pay yourself first is a way that people who do not make enough money to do all the things that they need or want to do can give themselves a little or a lot of breathing room.
It is a Financial system of thinking and allocating your income in a way that allows you to grow your funds that you do have.
You are wealthier than you think you are.
What do I mean by that? Let me show you
Ok, take me for example. I live month to month. Day to day and week to week at times. At the beginning of the month I say to myself. I am going to be able to save up some money this month.
Then as soon as I get paid. I have things that I forget about come up or things just do not work out that way.
I have enough income to do everything I need to do. I also have enough income to do many things that I want to do. So what am I doing wrong?
I am not putting a purpose to my money specifically for saving and investing.
I am paying all of my bills and obligations first. Instead of paying myself first.
How Do I Pay Myself First
The first thing you need to do is make a monthly Budget. Figure out what you just have to pay no doubt about it. For most people that is going to be rent, car, insurance, food, phone bill, Lights, internet and the such.
Those are considered essentials almost universally. Especially in the new pandemic era of living. Even the internet can be considered as essential.
So don 't feel bad about keeping that.
But anything you can do to shave money off of items on your budget even if it is in the Essential area is going to be your Pay Yourself Money!
So go through your Essential and Non Essential budget list and start shaving things off. 10 here, 20 there, 40 there.
Where can you be lighter and take away money from your budget. Even if it means that you stop paying on a bill or pay on it in a lesser amount.
If you already have bad credit or keeping up with that bill is causing you a lot of heartache. Then it may be a better idea to save that money up that you were spending on that bill to help give you some cushion for life.
Then maybe you can call up that company after a few months and start paying on it again.
So let 's say that that bill is $75 a month. You stop paying that bill for 4 months. You have just saved $300. Now you can take that $300 and use it as a cushion to pay that same bill.
As you continue on in the future to save up money and add to that $300 stash.
Pay Yourself First is not the first thing that we should think of when we want to get back on our feet financially. But it is a tool that we can use. It helps us to think more about what we are doing with our money.
It is really about how we Allocate our money.
And putting our money in a position to serve us best. Instead of just getting by. Just getting by and getting behind can add on a lot of stress and discomfort to one's life.
Let 's remove that. Once you build up a savings by using this financial strategy.
Make a list of things that you want to start investing in.
This list might look like this for most people
Health and Wellness
The list can be as vague or specific as you would like.
Then you can start putting money away into each of the things on that list.
Watch the money grow and grow exponentially.
Think about it this way. Living paycheck to paycheck is a really bad thing to be doing. Because it really puts you on the edge when something unexpected happens.
What if your car breaks down, you get sick, your job lays you off or fires you, or there is a economic shutdown and our great representatives in Washington are not playing nice with each other.
That never happens right?
People who do not have savings are in danger of something catastrophic happening and not being able to respond to it without getting into more debt.
You might have to
Take out a Loan
Put it on a Credit Card
Borrow Money from Family and Friends
To name a few. This is not going to help you get ahead. So it is nice to plan ahead by Paying Yourself First
Make room for your future!
What would've happened if I started doing this 10 years ago. Wow, I would be wealthy right now.
Putting $500 into a mutual fund account in 2010 while constantly adding money to the account every month.
In a moderate to aggressive manner as I like to do it. I would probably have at least $30,000 in the mutual funds right now.
That is considerable right!!!
On the low end if you have money on hand in your savings , investments or some kind of asset. That will allow you to do whatever you need to do without stress. That may mean that you are able to buy things on sale instead of full price all the time.
If you are broke and living paycheck to paycheck. You are not able to take advantage of those sales or perks. Giving to people who have the money or ability to pay into special clubs that give access to deals for a cost.
On the higher end,
Let 's just say that I wanted to buy a house, a car, or invest in a business opportunity. I could take that money that I saved up and use that as a downpayment or buy the car with cash.
I could get in on the ground floor of a startup. I could start a business of my own. I can take time off to help a charity. I could spend more time helping others according to my faith.
So many things can open up by paying yourself first!!!
Those bills are going to be there. Think differently about your income. You have more than you know.
I will tell you I think God that I thought about this in early December and started practicing it. I am looking at money differently now.
Next , we will talk about ways of using the money you are going to be saving by Paying yourself First in order to rebuild your credit.