Financial Eclipses

So, where I am located in this great country, there was only a partial solar eclipse today.  Eclipses are a natural part of our lives, a solar eclipse where the moon blocks the sun, or a lunar eclipse where the earth blocks the sun’s light hitting the moon.  At any rate, its one large body blocking out the other.  The majesty of it generates a good feeling, as you could hear from all the oohs and aahs from the total eclipse viewers across the country today, and the sounds of incredulity lasted from seconds to a few minutes, but when we see our expenses totally eclipse our income, or our liabilities totally eclipse our

Pay Yourself First is just a Platitude?

Pay yourself first.  You have heard this phrase many times before I am sure.  What does it actually mean?  Well for me it means, removing from your spending plan, funds necessary for saving and investment before you satisfy your other operational expenses.

I have been told by acquaintances that are regularly in financial trouble that “pay yourself first” is simply a platitude. Is it?  I gently suggest that they rethink their position. If you operate from the other end of the deal where you wait until you have satisfied all your expenses, you could often find yourself with nothing left to save or invest.  We are very comfortable in our consumer culture and so we really must discipline ourselves to offload income ahead of time to make sure that it isn’t “accidentally” or “purposely” spent, on everything else besides savings or investment. 

As the CEO of your own economy, make sure that you are first on your own payroll.  The responsibility is on you to make these savings and investment decisions.  Spending decisions are often made unconsciously, and they can occur often.  You must make conscious decisions to save and invest and only you can do it.   You will need that stream of income in your future, you really don’t want to be caught without it.