Pay yourself first

“We have become a society of indulgent consumers resulting in rapidly increasing debt both personally and as a nation.”

L G Durand

The first person you should pay when you get your salary is YOU.

But wait, do the maths on that first because if you have debt then that is likley to be expensive so pay that down first. Logical. No?

Or, should I pay down the mortgage, college debt or the car payments or whatever, screw it. I will just spend more on something else because this makes me feel better as the alternative is too big, too challenging and is causing me a real headache.

Amazon shopping here I come…

This is what happens inside so many peoples heads and I am more and more sure of it. If I am honest, it is what used to be going off in my own head but now I am clear of any debt and I am focused on building my future wealth so that I can buy back the end years of my life.

Did you get that fascinating expression there; ‘buy back the end years of my life’. This was something that I had heard before and had never really put enough thought or context around it. In a traditional sense, the buying back of your life is the years when you take your pension and in the U.K. that used to be the age of 65, but as they keeping pushing that age up, at the moment for me the official age will be 67, then it is never that clear.

Now with the latest context that I have learned from others, an insight here, I have been reading up on the FIRE movement and I have used that to reframe my own thinking. So much so, that now I get that the buying back of your life part, can be done so much earlier in my own life. When retirement is much more than being as clean, or exact as ‘stopping working’, then I can see more clearly what some of my future days may look and feel like. 

The idea of what I work as when I do retire can be more of my choosing. The idea of spending my retirement on the golf course does not fill me with joy.

I will now be working to buy back the years by paying myself first and by paying myself more and in doing so, I will be saving with a renewed and determined focus and passion. I will also by stepping back from the rampant consumerism that I was part of by making selective choices on what I spend my money on. I am now a selective consumer.

When you get to the position that you feel you have a reasonable amount of money stashed away and enough to live on then a world of choice can open up. I am in search of that choice now and will update on here what I find as I build my knowledge on how to achieve this goal and I follow the path I have chosen to have the time freedom that this luxury might give.

Going back to my first point at the opening of this blog and which is something I am now teaching my 21 year old daughter as she starts her new job… 

The first rule of saving is to ‘pay yourself first’ because that way you form a habit and once this habit is reinforced with the visible accumulated wealth, no matter how big, then the sense of achievement is infectious and the retirement age can dramatically drop.

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