popular and very effective saving strategy
that can help you choose saving over
spending money. Paying yourself first means
to set aside a portion of money (at least
10% of net income is recommended), for
saving each time you’re paid, before using
any of the money for spending. To success-
fully practice the pay yourself first strategy,
you should set personal goals. Setting
goals helps you to reaffirm your reason for
saving. A goal is a desired result or possible
outcome that you envision, plan and commit
to achieve. Financial goals are specific objec-
tives to be accomplished through finan-
cial planning and includes saving money.
Setting goals helps you to identify and focus
on items that are most important to you
and then make decisions that help you to
attain them. While in the process of setting
goals, you should consider the trade-offs to
those goals. Since a tradeoff means giving
30 HimPower May 2017
up one thing for another, every decision will
involve a trade-off. Being more financially
secure in the future by saving is a trade-off
to spending money in the present. If you
clearly understand what you are giving up in
exchange for the benefits of saving money,
your saving goals will become more attain-
able and realistic. When considering the
trade-offs to achieving savings goals, you
should examine your current spending as
well. Your spending may have to be adjusted
in order to reach your financial goal and
practice the pay yourself first strategy. The
key to successful saving is to stay focused on
what you want to achieve. Once you reach
your desired goal, you will find it was well
worth the effort!
Robert Rhinesmith is a Registered Invest-
ment Advisor, Applewood Capital Management
Associates, LLC.