There’s one question people always ask me about Financial Freedom. It comes up time and time again: “What is the one thing I should do today to become Financially Free?”
The answer to this question can change your life. Put simply, you need to start Paying Yourself First.
Instead of choosing to pay everyone else–bills, mortgages, car notes and on and on–start prioritizing yourself. Take your first steps towards Financial Freedom, and you’ll change your life for the better!
The Principle Of “Buying Your Time Back”
The principle is simple: buy your time back rather than sell your time for money. Traditional money myths say you need to go to school and work hard, so you can get a good job. And somehow everything will turn out okay.
Today, I am #CallingBS on this myth!
This is simply not true, and if you believe this myth, you’ll probably just end up feeling overworked and stressed. That’s because that belief leads to a negative financial cycle relying on selling your time for money for the majority of your life. Ninety-six percent of people are not Financially Free, because they believe money myths just like that one. They pay everyone else first. They pay their bills, their rent, they buy food, and then there’s no money left over for their future self.
If you want to be one of the 4% of people who achieve Financial Freedom you must break the cycle by Paying Yourself First. This is the first step towards Financial Freedom.
When you’re free, you can focus on what bring you true happiness and fulfillment in life.
A Simple, Easy And Magical Plan
If you’re ready to take the first step, you have create a plan to help you succeed. The Pay Yourself First principle is simple enough to understand, but without an action plan and clear goals, achieving Financial Freedom will be difficult.
You need to start by making a commitment to Pay Yourself First every month. And then you need to identify the amount of money to set aside each month.
Think about how much you can afford to set aside each month, and then write the number down. This is the first step to becoming Financially Free. The challenging part comes next! Some people struggle to identify their number and back it up with action. They might feel tempted to spend the money on a new pair of shoes, or perhaps they struggle to prioritize themselves above their other financial commitments. This only makes their lives more difficult–even if they don’t realize at the time!
If you want to be part of the 4% of people who achieve Financial Freedom, you need to Pay Yourself First instead of last. You need to ditch old beliefs about money and savings so you can prioritize yourself and your time.
How To Take Action
As soon as you get paid, transfer the money into a separate savings account automatically. Automatically leaves no room for “human error.” Set up the transfer to happen automatically within 72 hours of receiving your pay into your account. This way you won’t interact with this portion of your money, and and you won’t feel tempted to spend it. After you’ve paid yourself, pay your bills, rent and whatever other obligations you have.
If you need more help and want to use our Money Planner tool to identify your Pay Yourself First amount, join our Financial Foundations Community today. You’ll experience a community of ravings fans and supporters to help you to take action. Starting today, you’re putting yourself first!
image credit: Bigstock/blas
Dr. Tony is the co-founder of MindShift.money and the best-selling author of three books on personal and business finances. Having achieved Financial Freedom at 27, Dr. Tony believes that through Financially Fit Bootcamp and Cash Flow Cure everyone can get there. He has made it his life’s mission to help others live a life where their money works for them—not the other way around.