Small Business Today Magazine APR 2014 MONTGOMERY ROTH | Page 22

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.