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Pay Yourself First: The Key to a Comfortable Retirement
Summit Life Group
June 19, 2024
As we navigate through our careers, we all aspire to have the peace of mind that comes with knowing we will have enough money to live comfortably in retirement. While the retirement landscape may have evolved over the years, the fundamental principle for preparing for retirement remains unchanged: Pay Yourself First.
The Simple Rule to Accumulate Wealth
The path to accumulating wealth is guided by a simple yet powerful rule: Pay Yourself First. Although straightforward, it is easy to overlook this principle amidst the constant demands on our money. From taxes and rent to food, medical bills, the latest technology, vacations, and new cars, the demands on our finances are endless. It's tempting to postpone saving, thinking, "I'll start saving when..." However, that time often never arrives, as increased income often leads to an enhanced lifestyle.
Prioritizing Your Future Self
The "Pay Yourself First" rule teaches us to prioritize our future selves above all other financial demands. The classic book, "The Richest Man in Babylon," eloquently illustrates these principles:
"Gold cometh gladly and in increasing quantity to any man who will put no less than one-tenth of his earnings to create an estate for his future and that of his family." "Provide in advance for the needs of thy growing age and the protection of thy family." "I found the road to wealth when I decided that a part of all I earned was mine to keep." "Confuse not the necessary expenses with thy desires." "A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford."
Start Paying Yourself TODAY
Fight the urge to postpone saving for retirement. Delaying the process can result in lost years of compounding and hinder the growth of your nest egg. Make saving automatic, so you don't have to contemplate it every month. Begin with a small percentage and gradually increase it over time. The key is to start immediately.