“Paying Yourself First” should be automatic. Before you pay your bills or buy groceries, alway set aside a portion of your income to save. The important thing is to create an automatic sweep of a set percentage of your income into this account. 15% is Ideal, but if that is too daunting, start with a percentage that works for you. Remember it’s progress over perfection.
Breakdown of the 15%:
3% planned obsolescence
3% tax hikes
3% technological change
3% propensity to consume
3% inflation
Automatically save and deliberately invest. This peace of mind fund will eventually turn into an opportunity fund when you have more than 6 months of expenses saved up.
Your action item for this week is to establish your automatic sweep account if you don’t already have one. Be sure to schedule the time on your calendar to get it set-up!