1. Paying Yourself Last
This is one of the most important principles to understand when it comes to managing your money. Paying yourself first is a habit that can help you build wealth, but what does it mean?
Essentially, It means putting aside money for savings and investments before anything else. By consistently paying yourself first and structuring your finances, so your financial goals are met first, you’ll be able to save money for the future.
People who remain poor, as soon as they receive their paycheck, spend it on rent, subscriptions to Netflix, Amazon, and Gym membership, and by the time they do all that, they have nothing left over.
Rich people will always pay themselves first by putting 10 percent of their income aside every month, no matter what, towards their financial goals. That way, you force yourself to adjust your spending and reduce outgoings on things you can’t afford or don’t need.
This principle is so important and is often overlooked, but it is a surefire way to guarantee financial success in the long term.