Who's First on Your Payroll?

Some think of it as a platitude, I think it is a major financial tenet - what am I talking about? Pay yourself first. Your ability to build wealth should not be placed on the back burner, it should not be an afterthought, it should not be somethng you get around to after Peter, Paul and Mary have been paid, it should be your first priority.

An easy and painless way to do this is to have your payroll department deposit a fixed amount or percentage into a specific savings account. You can also request that a portion of your tax refund be placed into that account [the IRS will direct deposit your refund in up to 3 accounts - use Form 8888]. From this holding fund you can make your investment decisions at intervals that are appropriate for your financial goals.

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"No matter who you are, making informed decisions about what you do with your money, will help build a more stable financial future for you and your family." Alan Greenspan