Traditionally, we are taught from a young age that anyone who fails to pay their bills on time and in full is either irresponsible, lazy, or otherwise bad with money. By the time a person reaches young adulthood, they have essentially learned rule #1 of managing your personal finances: pay every bill on time, no matter what.
The reality though is that the importance of paying yourself supersedes paying anyone else. As cliché as it sounds, paying yourself first is an important financial lesson to learn and one that will serve you well in the long run.
In this episode, Malcolm Ethridge discusses the concept of paying yourself first, his belief that we should work, save, pay taxes, pay bills, and then spend what’s left in that order, and some recommendations for how to set up an automatic savings plan designed to take out as much of the human element out of the equation as possible.