Do you "pay yourself' first or last?

[Shrek]

I was taught to take 10% of my income off the top to put back for myself "as payment to the most important contractor I have working for me". I then managed my bills off of what was left. My exwife on the other hand paid everyone first and then paid herself IF she had any left over. Which type are you?

[jassytoo]

We pay ourselves first. Didn't used to be that way, bills always seemed to eat up the lot. Now we pay ourselves first we still get the bills paid and now realise we spent more money before on nonessentials before.

[limhyl]

Some money comes out automatically before we ever see it and a larger portion gets paid along with the bills at the begining of the month while there is still money. If there's anything left over at the end of the month, that goes in savings too. All for the homestead someday! Theresa.

[Nik]

Right off the top I have 10% put into a company matched 401k, then i take another 10% for savings. I wish I could say it was always that way, but I'd be lying if I did.

Nik

[countrygrrrl]

I choose one-two things a month I really want (and usually need) first --- then I pay the bills --- then I set money aside into either my IRA, my measly stocks or a savings account which pays fairly nice interest.

Right now, for me, paying the bills first is the most important, as in a year or so, I'll be looking into loans and other assistance through my electric company to make this place more energy efficient. The first thing they look at is your pattern of bill payment --- and if you have any late payments in the past 12 mos, you're automatically disqualified.

So I've been *guesstimating* my bills every month and paying them the minute they come in.

Once I apply for the energy efficiency assistance, though, I'll go back to paying myself first.

[Meg Z]

Us first.

Meg

[Cindy in PA]

Originally Posted by Meg Z

Us first.

Meg

We have 401K and savings deducted at work and work off of what comes home.

[MorrisonCorner]

We deposit 25% a month into savings, but only 15% of that represents long term savings. The rest goes to sinking funds for vehicles, farm impliments, a new roof... etc.

[Shrek]

Congratulaions. All of you have effectively laid the groundwork to allow your children to be "rich as the Rockefellers" if they just pick up the importance of paying themselves that 10% off the top. All of the biographies and autobiographies of the stable wealthy I have read include the concept of the 10% and in most cases an additional 10% to their favorite charities.

[3girls]

Charles Shedd said, "Tithe 10%, Save 10%, and spend the rest with gladness. I once read a book--I think "The Richest Man in Babylon" that used the 10% rule. There is also a good book, "Your Money or your Life" by Joe Dominguez, et al, that really makes some sense. To become money independent has to be one of the greatest freedoms of all

Sandi

[Haggis]

Herself takes care of all of our money. I have only one rule; pay cash for everything.

Many years ago a business successful friend asked my if I knew how much the average family spent in interest in a lifetime. I said there was no way to figure that as everyone buys differently, but I got the drift; all one gets for the interest paid is a liitle piece of paper each month to remind how much one is paying toward someone else's living.

Been paying cash or doing without ever since; it's surprizing how fast one can save a bunch of money if there are no bills to pay.

[Shrek]

Haggis,
Using credit in a tuned manner can actually be better than paying only cash. I often used my cash reserves to secure short term buisiness financing in what resulted in no or low interest loans after taking into consideration intrest earned from the secured savings. This way I was able to finance my business ventures while stepping my combined credit lines up to higher levels . Of course I never wanted to risk that much financing, but it was nice having the option if I required it.

[Haggis]

We get letters from our bank offering loans for this or that, and we get free credit cards with zero interest rates (yeah right) in the mail along and along, but we stick with straight cash.

I do understand that if one would need X amount of money in the next 48 hours in order to make XXX amount of profit, financing would just be another tool in the box.

I've have to let some bargains pass to stand by my guns on this one, but it is the path I have chosen.

[mightybooboo]

I have an extra 18% pulled out of our checks into state/federal tax accts.Since we are out of deductions tax bill has gone up.Will see this year how we make out.
BooBoo