10 May Pay Yourself First!
Last week, I was invited to one of my bank’s special functions and they had a very well known Canadian expert on personal finances speak to the audience. I remember one concept that he taught me 15 years ago which I continue to practice today and it is “Pay yourself first”. Some of you may have heard about this concept for saving and growing your money. For those who don’t know, it means that before you pay any of your bills, mortgage, rent or any payment to someone else, you set aside a fixed amount of money each month to put into your savings or investment account. This method allows you to easily save money for a rainy day and grow your money over time. The best way to do this is set up a monthly pre-authorized withdrawal from your bank to a separate savings or investment account, just like a bill payment and watch your money grow. If you’re like me, you might forget about this savings or investment account that you’ve been growing for years and find a pleasant surprise when you see how much money you’ve accumulated.