The principle “pay yourself first” is a proven strategy of wealth building. When you treat your savings with the same integrity as you do your other creditors, you begin creating your financial wealth.
The principle of paying yourself first means that before you pay any monthly bills, you should deduct between 5% and 15% of your paycheck as savings. This should be considered as your top priority, as your financial future is just as important as that of your other creditors.
Only after paying yourself first should you pay other monthly bills. This ensures that you save every single month. By paying yourself first, you can build your wealth. For example, if you paid yourself only $200 per month, through the power of compound interest, you could retire in 30 years with $215,000.