EDITORIALFEATURE
Pay Yourself First and Become a
Money Magnet
By Dr. John Demartini
P
eople who pay themselves first get
ahead and people who pay themselves last fall behind. The former
become wealthier and the latter become poorer; it’s as simple as that.
how you manage what you earn, and it’s
about developing the habit of saving.
So the first step to turning your piggy-bank into a biggie-bank is to implement an automatic debit to your savings
What does it mean to pay yourself first? account. Then watch how magically your
It means that you prioritize your saving mastery over money begins. Haven’t you
plan above every other expense. That’s ever noticed how money tends to magneright; you come before the electricity bill, tize itself to those who study and practice
the mortgage, and even before the taxes. the principles of wise financial manageThis doesn’t mean you’re not going to pay ment? These people somehow seem to
for those things. It just means you get paid get more money to manage.
first - period.
Most people live by the standard,
“When I get extra money, when I pay off
the house, or when I win the lottery, I’ll
start saving.” That means they’re valuing
everything and everyone above themselves and their future financial security.
When I first started in business, I used
to place myself last financially. I tried to
be Mr. Nice Guy and make sure that all
of my creditors and employees were paid
first. At the end of each month, I would
take whatever was left over, which wasn’t
much. I struggled financially, and even
though I worked hard with long hours, I
always seemed to just break even. I then
woke up to the fact that the most indispensable person was me. From that moment on, I made sure I was financially rewarded for my work and I started paying
myself first.
$200 went into my savings account
each month. That was a lot for me even
on a doctor’s salary. A few months went
by and I found I wasn’t missing the money
so I increased it. You can do this too. It
doesn’t matter how much you earn, it’s
The opportunistic thing
about money is when
you have $1,000 saved,
you get $1,000 opportunities. With $100,000
saved, you get $100,000
opportunities and when
you have a $1 million
saved, you guessed it,
you get million dollar
opportunities. Imagine
what types of
opportunities
billionaire Bill Gates
receives every day.
The other side of the savings plan is to
manage your spending so as not to create
unwieldy debt. Investing in depreciable
things instead of appreciable assets and
living beyond your means is precariously
manageable short-term but does not provide for the future long-term. If you want
20 SMALL BUSINESS TODAY MAGAZINE [ APRIL 2014 ]
to have more money at the end of your
month than month at the end of your
money, then spend wisely.
Emotion or the lack of it is another
factor in building wealth. It was Warren
Buffett who said, “Until you can manage
your emotions, don’t expect to manage
money.” Anything that you are infatuated
with runs you and anything you resent also
runs you. So the message here is always
be strategic about money.
The opportunistic thing about money
is when you have $1,000 saved, you get
$1,000 opportunities. With $100,000
saved, you get $100,000 opportunities
and when you have a $1 million saved, you
guessed it, you get million dollar opportunities. Imagine what types of opportunities billionaire Bill Gates receives every day.
There are profound benefits to managing your money wisely. You not only get
more to manage with compounded interest but you start to feel more entrepreneurial. You attract new associations into
your life, new ideas, and new opportunities. You have more courage to “do your
own thing”. You start living an inspired life
doing what you love and loving what you
do. This geometrical compounding opens
the doorway for even greater wealth.
Now that’s financial mastery.
Dr. John Demartini is an internationally published author, educator, and human behavior specialist. To book
Dr. Demartini, contact the Demartini Institute by email
at [email protected]. You can also visit his website at www.DrDemartini.com. To download a free Value Determination Process Workbook, please visit www.
DrDemartini.com/pm_determine_your_values.