Always ALWAYS Pay Yourself First! (This is why and how.)
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- เผยแพร่เมื่อ 23 ม.ค. 2017
- All the millionaire and billionaires do it. You've heard it many times I'm sure, but why is it so import to pay yourself first? I'll explain it all in this episode. When I first started paying myself first I had no idea what it actually meant. That's why I'm here to teach it to you today.
This will CHANGE YOUR LIFE if you take action.
The Break down is:
80% of your money goes to essentials
10% goes to Financial Freedom (money put aside to make you more money and nothing else!)
10% Play (Money for you to enjoy yourself. You HAVE TO SPEND ALL OF IT each month.)
Always ALWAYS Pay Yourself First! (This is why and how.)
Thanks everyone for all your support! I re-made and updated this video.
You can find it here>>>
th-cam.com/video/H1ZikSwRT7U/w-d-xo.html
Paying yourself first is honestly one of the greatest foundations to building wealth
I started doing this a year ago, that in conjunction with budgeting has been life changing.
Thank You!! 😂 I was wondering how do I pay myself first? Makes more sense and love how you broke it down. Life saver! Wished I knew this in my 20's but never too late to learn smart ways for financial freedom.
I've watched several of these pay-yourself-first videos, and this one of yours is the best. I like it even better than your remake of this video. Everyone else says, pay yourself first, but you go beyond that. You tell what to do with this money, and it's simple to understand.
Thank you!
Read the book The Richest Man in Babylon and my entire thought process surrounding money has changed. My son with this important life advice will be fine in the future ......and his children
The richest man in Babylon
Check out the compound effect also or the slight edge.
@Batirtze Urkiaga Etxabe
It's been a life saver. Along with my budget, money is almost no object .... Lol!!!!!
Great vid! I had to change my mentality to make paying myself a priority like all those bills that I pay on time.
Thanks man I appreciate you taking the time to make this video.
Hey! Great video and love the honesty oozing from you! I came across this idea from 'Richest Man In Babylon' book. Never applied it but after your post will definitely start with my next cheque. Love the content your putting out 🙏
Nailed it with that phrase "focus on the value not on the cost"!
You were right. I live on a very low income in the Netherlands (75% minimumwage). But it is doable. I was only be able to save 4-6% before. But after much thought i could reach the 10% target without destroying my life. I am doing it for 2 months now. And my savings/ investments will grow at a 148 euro’s a month. I saved on book purchases, maintaining my pc games collection on steam, clothing (i buy my pants/tshirts at a recycling store), small household expenses and some minor things. Thanx for your advice in improving my financial security.
Hi. I am so glad I found you!!! Will definitely start to pay myself and share your tutorial!!! Thank you!! God Bless!!!
I really feel like you care, refreshing
Thank you for this video! I definitely needed help understanding the "pay yourself first" model. You explained it perfectly! New subscriber!
Such a great video!!! Thank you so much for explaining. I was having a hard time understanding and I know I’m gonna be wealthy from this. I’ll thank you
Thank You so much for this valubale information. I watched every minute of it and payed close attention. I’ve recently implemented this into my own. life and I’m now beginning to see the fruits grow.
Such good info-thanks for sharing!
Thank you for the outstanding information!!!!!
Thank you. Very nice video. I like the fun money. Really makes sense.
I’m learning how to budget, excited to implement this strategy. Thank you!
Subscribed 🎊
You are the man!!!!!! Very informative thank you.
I heard about that concept but no one was able to explain it to me. Thanks
I like the premise here. The concept is well thought out.
Thanks a lot for your advice.😁
I love this video. It’s actually underrated and a beautiful beautiful concept
🗣️pay yourself first!!! All facts like you said it will change your life!!!!!
Thank you, so true!
Thank you for this information
I have found your lessons extremely useful, so i subscribed making it exactly 330 Subscribers.
I will definitely apply some of your methods.
Thank you so much!
Matt this was a Awesome video, I am struggling till today to Pay myself first, hope this video will change that.
Thanks so much! I hope this video can help you. ☺️
U have a well modulated voice...that goes well with ur explanation...btw i bought rich dad poor dad book and locally published financial books and now im too obsessed to save more...even i created my own expenses list to track down where my money went...hopefully i can achieve financial freedom as im getting very older...im 43...
That's great to hear! You'll get there.
Great video. Thank you! 👍👍
Awesome content wow 5 years ago but still holds true in time.
Thanks the video was informative. Good advise indeed from South Africa.
Awesome man. I'm really glad you liked it. Thank you for the kind words and motivation. 😊
Valuable info Matthew👍🏾
Thank you.. I feel like I can't. But im going to do it
the 80-10-10 formula reminds me of a talk in church. Thanks for sharing
the 80% was for essentials, the 10% for savings and the final 10% for charity/tithe/etc
GREAT ADVISE.. THANKS
Thank you for this video I was telling my husband about it and he is constantly wanting me to give him all of the money I make to pay off credit cards which I understand but at 43 yrs old I don’t have a savings
at 18:00... I KNOW what you mean.... totally can relate to that feeling. Thank you for your video!!!
Great video. Thanks for this! :-D
Thanks Christopher! I'm glad you liked it.
Thank you for this. I'm 2 years late but about to give this a go.
Adaeze Chiwoko it’s never to late. You got this!
I was learn about pay first yourself, but I wonder how people sets it themselfs.
I was really impressed with your 10% play account (which is more important for me as self treatment and travels).
Now I will plan my salary into 3
60% for necessary
25% for financial freedom
15% for play
This is a eye opener for how I should allocate my finance.
Prasanna Ambigaibagan Nature & Wildlife Photography
Thank you so much! I’m glad my video was able to help you out. 🥰
Thank you! ❤
Thank you
Great video ..never had a fun account ..have been paying my dues...
I can truly relate to this.. this is legit truth
Thanks for posting a video that will help people. I had a hard time with the repetitive info. Also, had a hard time hearing anything after you misspelled financial.
Great video
Awesome video
I STARTED OCTOBER 15 PAYING MYSELF FIRST.. IT IS A GREAT FEELING 125 MY NEXT CHECK I PUT 160.. 😊😊 GOING TO KEEP WORKING MORE HOURS.
THANKS THE PLAY ACCOUNT IS A GREAT IDEA 💡 .GOING TO USE THAT NOW.
"A part of all you earn is yours to keep"
- The Richest Man in Babylon
Makes sense! I've been doing 50/30/20.
I appreciate it, I will put away much more percentage tho since i live alone of social money 😂
This is useful.
Good stuff I live better now
Hi Matt! Great info here! I stumbled across your video doing some research on a free program I'm putting together on Facebook. I'm interested in sharing some of your videos to my followers or maybe even collaborating with you on new videos if you're interested. Let me know! Keep up the great work!
Hi Mark! Sure I'd love to collaborate. Message me on Facebook and we can chat more about it.
facebook.com/howsuccessismade/
Thanks I'm glad you're liking the videos. 😃
Hi It is nice video u made ...really thank u .
U said some method name in video which is that... can u spell me in comment ...
Sure, many people use different variations of this method but the one I use is by T. Harv Eker. It's from his book called "Secrets Of A Millionaire Mind"
If you spend all your play money every month, how do you save for a holiday? Which pot does savings for a car go into?
That would be your long term account. You can make as many accounts as you feel necessary, you could even make a separate account for your car if you want to. The important thing is just to allocate your money and stay discipline to use the money for those purposes.
What are your other savings accounts ???
Hey Minnie! It depends what your goals are, but if if it helps currently mine are:
1. Essentials: Your standard bills
2. Financial Freedom: Money spent to make more money
3. Play: To have fun
4. For Something: When I'm saving up for something.
5. Taxes: To pay my taxes at the end of the year.
6. Long Term Savings: For future large purchases or emergencies.
7. Tithing: Money to help other people.
8. Travel: To travel
9. Education: To buy books, courses, and pay for mentorships to grow myself.
Once you get in the habit of managing and separating your money it becomes easy to manage more account. That's why I always recommend just starting with the first 3.
Hi I understand the concept of Pay yourself first you invest in yourself and eventually you will have other streams of income that should eventually exceed your expenses but I am currently reading Rich Dad Poor Dad and am trying to find a real life example of what it means literally when you apply it to a situation when you're first getting started. I have yet to read or see literally what you do if you pay yourself first and don't have money left to pay bills. We can plug in all kinds of bills but lets use electric for example since it is a necessity. If I don't have enough money left to pay, do I just not pay the bill? How do you negotiate with collections so they don't shut off your electricity? Credit cards will add late fees, etc. Been trying to find that answer and how you work out that process. Thank you for your clarification and help!
Hi Aaron, I understand. I went through the same thought. That's why it's important to start with small amounts, just to build the habit first. Start with 10% of your pay check. 5% to play and 5% to financial freedom. Chances are once you're use to putting that money aside that small amount shouldn't affect how you live, and if you really need that extra 10% of cash you'll get creative and find another way to make it.
Think about it this way. If your job started paying you 10% less on every paycheck what would you do? In that situation you'd have to either live without that money or figure out a solution to make it up. The habit that is so hard, but so important to build is to create that situation yourself. You have to train your mind to think about that money differently, you have to think about it as not even available for you to spend. Then as you build the habit you start to increase the amount you put aside.
Let me know if that helps. 😊
How Success Is Made yes I commented there after I saw you made an update. I figured that you would see it there first. Thank you for your help!
@@doodoobuttered Your welcome. If you have any more questions feel free to reach out anytime. 😊
If you have bill collectors threatening to sue you and you have unpaid medical bills, do you still recommend doing this?
Sharon King
Yes, but create another account that you can put money aside in to help pay that off.
Can someone help me with this: Should I payoff my house or max my Roth IRA?... FYI, since I'm near the end of my house loan, the interest per month is very little, so of course my Roth return is much higher. Thank you in advance!
Great job!!! You resemble Bad Bunny!!!
What do you do with the 10% in the financial freedom category? Where do you invest it? Also, the play money should be fully spent? Why?
Great video!
I have question what if you reduced your bills “essentials” to 25% . I have reduced my outgoings by switching to cheaper services etc. Should I put more money into play or put more towards financial freedom?
Hi Ali, Thanks!
I would create other accounts that you need, for example, Tithe, Long-Term Savings, Education just to name a few. If you want to increase your play or financial freedom account I personally would recommend keeping them at the same percentage as one another. Those 2 accounts should always balance each-other out.
Good for you though man, getting your essentials down to 25%! If you have any more questions just let me know. I'm happy to help. 😊
Can I save my play 10% over time to have more play money for like vacations? Or spend that 10% no matter what each month?
You have to spend it each month. The goal of it is to help you off set working all the time by having fun. You can make another account though if you'd like to save for vacation.
@@matthewcory89 oh cool I see! Thanks man I'm really excited to try this:)
The RIch dad poor dad pay yourself concept works a little different.
im 13 and i cut fire wood and this trick really helps
essence of art I like your drawing of Luffy. 😆
💯💯💯💯💯
Don't work more hours
Make more money !!
Do/Build something that with pay you passively
4:35 what's his name???
Mikekaveli Tha don his names T. Harv Eker and the book is secrets of the millionaire mind. 🙂
I didn’t catch the tithing aspect of it added to these steps
I have an account specifically for tithing usually 5%-10% of the money I make goes into that. It's an account used to help other people when they are in need. It could be a friend, family, or just a stranger. It's an amazing feeling to be able to help someone in need.😊
Hi I wanted to know if and when should I pay my tithes because the tithe is also 10% and you did not mention that in the video?
Hi, I would say your Tithing account should be the next one you create. It's very important to give back. Once you feel comfortable paying yourself first and you've been consistently putting that money aside go ahead and create your tithe account. 😊
Trying to get my girl to understand this is driving me crazy
lol
'Financial' is spelt wrong. The idea is very good but it should be AUTOMATIC. you shouldn't have to think each payday to transfer money over into sub-accounts.
Hi Peter, thanks for the comment and like!
I agree, but I wouldn't do that at first. By doing it yourself it will help you build the discipline to manage your money in the first place. Building the habit first is extremely important in my opinion. Once you have that habit though having it done automatically is a good choice. Sadly, in my experience, I've never had a bank or credit union that was able to do it automatically for me, in a percentage that is. The only thing they can do for me is a set amount of money each week or month, which can work if you make the same amount every week, but unfortunately that doesn't work for me. :(
Also, ya I noticed I spelled financial wrong when I uploaded the video. Can't do anything now though. lol
How can you put money aside if you have bills? Don’t you have to get on top of your bills first?
Defiantly pay your bills, but your bills shouldn't be 100% of your pay check. If you have debt I recommend creating an account specifically for your debt and maybe put 10% or 20% of the money you make into that. But still continue to split your accounts in this way too. Your first goal should really be to build the habit of managing your money, nothing, even bills shouldn't stop you from paying yourself first.
How Success Is Made I hear you but if your bills even without debt are costly then you have to get to a place where you can reduce them first before paying yourself first. I have a new business and I live alone so have lots of bills. I don’t have debt except for car finance but my business and personal expenses are where all my money goes for now. I have created a savings account but my point is the first step should be to reduce bills, then increase cash flow or profit into a business and maybe then pay yourself first but it’s just my view on it. Putting money aside is definitely a good thing to do but it’s not a blanket approach that works unless individual circumstances are taken into account I think.
It seems like you're in a rough spot. I believe I've been in a very similarly situation. I had hardly any money coming in and everything that was coming in I was spending on bills and my business just to survive. I didn't have any extra money to spare, that's when I heard about this "pay yourself first" thing from the people I was learning from, Robert Kiyosaki, T Harv Eker, and many others. Long story short, I felt the same way as you do at that time, but the reality, for me anyway, was my financial situation never really seemed to change from that position until years later when I actually started implementing pay yourself first. Even if it was just a dollar I trained myself to put money into separate accounts and only use that money for the thing it was meant for. Just doing that 10% in 6 months I had more money than I ever had in my life, which at the time was only $600 or $700. And after putting that 10% aside I realized it didn't actually stop me from being able to pay my bills, even though I thought it would. Anyway I hope my answer is helpful. I know you're not the only one feeling this way, I would have to if I saw this 6 or 7 years ago.
How Success Is Made thank you, yes it makes sense I guess because for things to change, we have to do things differently so I can take on board what you’re saying because it’s not just about a person’s current situation but also about the future 🙏🏽
Great video! Kept it simple. I use my company 401k and ESPP to do just this and it is life changing!
what do you mean? this makes absolutely no sense, unless you can explain.... or do you just mean you have a regular 401k from your job like most of us do.... or do you mean you take money out of your 401k to make it grow elsewhere?
I mean I use my company 401(k), max that out, then max out my company Employee Stock Purchase Plan (ESPP) as well to get the full benefits and max savings rate.
these are savings accounts?
Yes, I usually make my Play Account and my Essentials Account Checking Accounts and the rest are savings. 😊
@@matthewcory89 nice! Thanks for the info
I don't earn any money how to start
Find or create a way to make money for yourself first, then you can manage it.
❤🎉
It's so hard watching this while it says "Financal" on the board
I know what you mean.
Don't pay car insurance, get stopped by police, go to court, maybe prison. Pay the stuff u end up in prison if unpaid first!
haha, Obviously don't break the law.😂
Because your rent keeps you from being homeless and a car helps you to get work. I agree with the idea but I think it’s more for when your business or finances are in a good place. This would do more damage to people in debt or who are struggling to manage their bills. Just my view.
You're right! Most financial guru's encourage being debt free first, and then you'll be able to pay yourself first. If you're in debt, any money you say isn't your money.
I still do believe you should pay yourself first, even if you’re in debt. In fact I think this is the best thing you can do if you’re in debt. It’s important to build the habit as soon as possible. In my experience I didn’t get out of debt until I started doing this because my old spending habits kept me in debt. It wasn’t until I started managing my finances in this way that I got out of debt.
If you do have lots of debt however this breakdown may not be for you. Instead make an account specifically to pay off your debt. Put 10%-20% aside from each paycheck to pay off your debt, because ultimately that is what you will need to do to become financially free anyway.
I hope that is helpful. 😊
10% towards financial freedom seems low...
You can allocate whatever you want. But always use percentages. Study bitcoin and it will increase. Fed will cut rates, aka inflation. Inflation is good for the markets.
Ouch...no way..I guess it depends on income and each person,,I think 80% for essentials is way too much!!! If a person is doing that they need to cut some things out that are not necessary..I keep my expenses low, so I think I can say my "essentials" are about 25% of my income...which gives me 75% to save for emergencies or play funds or retirement accounts..
Yea especially for people who live alone ur right 💯💯
Either u have very little bills, or u make a lot of money, especially with the current economy
Smartmartic
Finally starts at 7:08
Redid the video because of that. > th-cam.com/video/H1ZikSwRT7U/w-d-xo.html
Could've made this video in 3min!
I agree, That's why I re-made it here. =)
th-cam.com/video/H1ZikSwRT7U/w-d-xo.html
You promise if you save now in three months you will have more then not saving? Lol
Those are facts. haha
I would give you 5 thumbs up if I could. Thank You
Hey! Thanks so much Joseph!
How about paying your investors first, You are not putting money up front for anything.l.. i can tell look at what you are trying to do.
Your investors are one of those things that are for you but it's still not you. You have to take care of yourself first before anyone else, that includes your investors, otherwise if you are sinking financially you won't be much help to them or anyone else anyway.
You spent the first 10 minutes saying nothing. I want my time back!!!!
Jojo Jo shut up it’s all valid and important to the nuance of his points
A sacco is the best place to open freedom acc.Have been using that acc for 5yrs and it woooo