MONEY MINDSET #3

One of the key things that you must-do, if you want to achieve financial freedom, is to pay yourself first when you get paid each month.


What I mean by this is paying automatically into your savings or investments as soon as you get paid. By doing this you are prioritising your financial freedom and you are hardwiring your brain to focus on what matters most to you. This action supports your money mindset of committing to creating wealth.


It makes sense if you think about it because if you use your disposable income to prioritise your discretionary spending such as new clothes, the newest gadgets and eating out and have the mindset to save whatever is left behind then what I find on most occasions is that after buying everything that I want I have nothing left for me to save. This way of thinking is called 'living paycheck to paycheck'.


Start by looking at your disposable income each month and setting up a standing order to your savings account so you won't have to think about it each month. Just think of it as a monthly expense but instead, you are paying yourself.


I would recommend starting small and build the habit of paying yourself first. Paying yourself first as little as £25 a month as a starting point into your savings and increasing it as you go along. This creates a positive habit and it will motivate you to save more each month as you see your savings account increase over time.


Does that mean that you cant spend anything for yourself? Of course not! Once you have figured out your disposable income for the month half your disposable income; 50% goes straight into your saving and the other 50% goes into what I call a play account. For example, if I have £100 disposable income £50 goes into my savings or investment account and the other £50 goes into a separate account where I can spend freely. Obviously the more you save the better but its nice to accommodate for your lifestyle too so you don't get demotivated quickly. This helps you to stick to your budget easier too!


It is important to remember that you work not just to pay bills but to live. This means saving for your future self and achieving financial freedom.



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