"Only the unlearned make money without paying themselves first.*
"Mike, how far? I have started learning a skill, ooh, and I am enjoying it."
"That's good. What skill are you learning?"
"Content writing, ooh guy. I have been going through some tutorials. I even met someone that wants to test me with a task."
"How long have you been learning?"
"About three weeks now, bro. Should I go ahead?"
"Is he willing to pay?"
"Yea, he said he would pay for the test, and if I am good enough, he'll increase the pay."
"Okay, that's good. You can go for it."
Jim makes to leave the room.
"When that money drops, I go first but shawarma."
"Jim, did I hear you correctly?'
"How far na, I no fit chop the fruit of my labor again?"
"It's not that, Jim. I understand that it's good to have plans for your money before you receive them personally. I believe it is sometimes too optimistic, considering you have not done the job..."
"Mike, I understand, but..."
"Also, the first person you should pay when you get your money is God or yourself, depending on your spiritual leanings. Abi, you don't want to pay your tithe?"
"I'll pay tithe, but what do you mean by pay myself?"
"Jim, you know how I always have extra money to spend even if I have not worked for a while?"
"Yes, I was going to ask about that."
"Well, it is because I pay myself first. But it goes beyond that."
One lesson I took from the Richest Man in Babylon is always to pay yourself first if you don't have any religious obligations, and if you do, sort out the most important, then pay yourself afterwards.
Paying yourself is quite different from treating yourself. Paying yourself is saving money first before spending on any expense.
Why save?
Savings is a form of safety net.
Many people make money but do not have a savings habit; as a result, they spend virtually all they earn before they know it. They fail to prepare for eventualities. Straight and simple, this is not wise.
Having some money down to cater for unforeseen future occurrences is a lifesaver. It helps to take care of emergencies and gives you a general feeling of safety.
Saving positions you for opportunities.
While Mike and Jim will talk about investments tomorrow, for now, you should know that many financial assets need a sizable amount of money. A savings plan for investing is the best way to prepare for investment without feeling the weight of money leave your spending account.
How do you save effectively?
- Calculate a fixed percentage to be saved on all income. This fixed percentage would create discipline for you.
- Automate the process. Do you have a bank account? I know for sure that saving in a bank working bank account can be challenging to do; why not open up a saving account. You can easily use a savings platform like Cowrywise that would easily automate the process for you. In the nearest future, a post giving insight on various saving platforms will be released. Keep your eyes peeled
In conclusion
Saving can feel overwhelming, but the bottom line is for you to start. Once you put that part away for yourself the first time, remain consistent, and the rest becomes easy.
What to do?
Take stock of your earnings and calculate what percentage you can pay overtime, stick to it.
