When we receive our salary, almost all of it quickly goes to paying others (aka paying bills). This is true for people with high salaries as well as meager salaries. As people more earn more, they simply increase their expenses. Buy a bigger house, buy a more expensive car, buy new furniture, whatever else. So the entire salary is spent paying others, leaving nothing for yourself.
Paying yourself means putting money aside that will take care of you in financial difficulty. Your clothes and shoes will not buy groceries if you lose your job. Your savings will pay for your groceries. If you invested your money, the income from the investments will take care of you for a longer time.
The best way to save money is to pay yourself first. Take it directly out of your salary before you can plunder it. Call it your prosperity tax or financial safety tax. Can you live if you are paid 1% less than your last paycheck? You probably won’t notice the difference. Start with 1% per salary and gradually increase the payments for yourself.
Put this money into a savings or investment account. Let it grow till you need to use it. When the returns from your investments are equal to or greater than your salary, you can retire. Congradulations!
