Cultivate a pay-yourself culture
To advise nine-to-five workers to pay themselves first is ludicrous.
Like? “What is the point of my paycheck if not for me?”
Your “hard-earned” pay benefits four people: your present self, your future self, God, and your family (friends, the needy, etc.)
Paying your present yourself includes your wants and needs.
Paying your future self comprises of your investment, education, retirement and saving.
Paying God comprises of your Tithe and Offering (and other sacrifices).
Paying your family comprises of Parental Offering, Community Development, Children's School Fees, Family upkeep, etc.
Sorry to burst your bubble, but your net pay isn’t entirely for your personal consumption. Paying yourself is crucial because it helps to quell the insatiable man within you and prevents him from attempting to touch the money that belongs to God or your future self.
Personally, that was the first financial theory I came up with for myself since I recently started earning a salary. After observing its effectiveness, I decided to spread the word to my community.
I was practising the 50–30–20 budgeting method before I had a job, which is appropriate in my situation. For instance, I give my future self 20% and my present self 50% of my overall earnings (side hustle included). 10% for God and 20% for my family.
This percentile distribution has aided in the development of a frugal way of life. I quickly move any money received from my business or side hustle or my income to the appropriate account.
Many people have frequently questioned how I was able to accomplish this. Let’s just say that, in addition to my discipline, a few other factors have contributed to my financial success.
1. Knowing my cash flow.
Without a thorough grasp of my financial inflow and outflow, I cannot comprehend my finances and determine how to manage them effectively.
Start getting to know your cash flow by listing all of your current costs (even small ones like a data subscription, the bottle of water you got from the hawker, or the newest wig you bought).
At the top of a sheet of paper, write your net take-home pay, which is the total sum of money that is paid into your bank account each month.
2. Finding places to slash my spending.
Even if they are cliché strategies, bringing my own lunch to work, cancelling my Netflix and book subscriptions when I don’t use them, and declining last-minute or unplanned purchases help me keep below my spending limit, due to the fact that these small charges quickly pile up.
By doing this, I have automatically added at least N7,500 every month to my savings account.
3. Getting a side hustle
Our interests, dreams, and aspirations cannot be supported by our salaries. Finding a side gig may be difficult, but if you can’t locate one, think of inventive ways to earn money quickly that won’t put too much pressure on you or your current employment.
Writing and design have been two of my many side businesses. However, after I began working a 9–5 job, I stopped designing since it took too much time and instead concentrated on blogging, growing my investment, and producing and selling digital goods.
4. Paying myself first and others immediately
As soon as I receive payment for professional services or a salary, I promptly allocate the appropriate amount to my present and future selves, God, and my family. This helps me avoid spending money I shouldn’t.
Although the road to financial freedom is lengthy, making a few choices will make the journey joyful. If you choose to, you can live a salary-earning life without debt.
The decision is up to you!
Why do you spend money for that which is not bread, and earnings for what does not satisfy? Listen carefully to Me, and eat what is good, And let your soul delight in abudance.
If you enjoyed reading this, please clap as many times as possible, as it makes the post more visible to those who may like it or learn from it. You can be a member of our financially thriving community, we would love to have you.