PayING Yourself First

On December 11th of 2020,  I read an article from CNBC that caught my eye. The title read, “63% of Americans have been living paycheck to paycheck since the Pandemic”. On top of that, about 44% of respondents say they were living beyond their means before the pandemic, and two-thirds said that they regret not having an emergency savings. 

Paying yourself first refers to the practice of automatically making a savings contribution or investment with your income before it can reach your wallet. Before you pay bills (utilities/rent) or spend money on entertainment (going out/shopping) are you setting aside a fixed amount from your paycheck? 

In no way am I stating that you shouldn’t pay your bills or not to go out and enjoy yourself from time to time. I’m simply suggesting to take a second and think about how much can you set aside to invest in your future. It doesn’t matter if it’s $100 a month or $1,000. As long as you’re starting somewhere. I began paying myself $500 a month since I started working. Eventually that amount grew more and more as I saw the potential of investing.

Fast forward to January of 2021. This month has marked my largest return on investment (ROI) from investing in stocks. I accumulated approximately $10,000 in realized gains in a single month. This now brings me a step closer to my goal of having a 6 figure emergency fund.
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I know I cannot make you do anything, but as long as you follow me I will continue to share my stories in hopes to inspire others.