It’s never-ending, debt seems to constantly grow and by the end of the month, it seems like there is no money left for yourself. Simone Milasas, author, entrepreneur and worldwide coordinator of Access Consciousness shares why it’s important to pay yourself first and how you can watch it grow.
When I was $187,000 in debt, one of the first tools I implemented that really started turning my financial situation around was a ridiculously simple one: Put ten percent of all the money that comes in (that’s the before tax amount!) into an ‘honouring of you’ account – always use that 10% to pay yourself first-before you pay any other bill, and never, ever touch it! It is not a rainy day fund. It is money that you have to watch grow – forever.
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Sounds crazy? I thought so at first. I actually heard this tool countless times before I realised that I had to try something different if I desired my finances to change. I also realised that the worst that could happen is I would end up with some money that I would have to spend!
So, what’s the point of having a pile of money you never spend? And why is it so important to pay yourself first, before anything or anyone else?
Paying you first breaks the ‘self-debting’ cycle
Self-debting is such an epidemic in our culture that ‘debtors anonymous’ groups actually exist to help people stop being compulsive ‘self-debtors’. A self-debtor is someone who continually puts themselves last on the list of who gets to receive anything – money, kindness, joy – you name it. As a self-debtor, you will put your bills, credit cards, loans, other people, your dog, just about anyone above you on the “who gets to receive” list. We are told over and over we supposed to give, not receive, and to do otherwise is selfish. The funny thing is, when you start to honour yourself, you begin to have more available in your world to contribute to others as a result.
When you pay you first with the 10% account, you are demonstrating your willingness to value yourself. You may find that the energy in your relationships, career, health and all kinds of other areas begins to change as you honour yourself with money … it’s kind of contagious! You may also begin to recognise other places where you have been putting yourself last and start asking – where else can I be more honouring of me?
Having money takes you out of angst and into ease
One of the things I was surprised to find out is that it doesn’t actually matter how much money a person has – rich, poor or somewhere in between – most people still have ZERO sense of peace and ease with money! Being rich does not automatically solve your angst with money!
How does having money you don’t spend actually help? When you create your 10% account, you will notice at some point that you suddenly have a greater sense of peace with money that you may never have experienced before. The particular ‘peace’ amount is a different dollar value for everyone, but many people tend to notice a real difference when they have an amount of money in their account that they could easily live on for 3-6 months.
And it still works if you have debts!
At one point, I still had quite a lot of debt when I noticed my 10% account had reached about $10,000. It felt so good to have that money there. I could have put it towards paying off more of my debts, but I realised that it was such a huge contribution. Just having it, it helped me acknowledge that I was capable of generating more money, growing the account, and continuing to pay my debts too. That is part of what having peace with money provides you – the sense of knowing you will always have money, and that you always have the ability to generate more.
You can have FUN with your money!
We don’t learn that we can use, and play (yes, I said PLAY!) with money in ways that contribute to our lives. You are allowed to have fun with your 10% account. For example, you could buy items of intrinsic wealth that continue to increase value over time – such as gold, silver or platinum. Antiques, antique jewellery and sterling silver are examples of intrinsic wealth that also have the added bonus of contributing something beautiful to your life! Do not spend your money on anything that devalues over time or that costs money to maintain (like a car or house), and you will be on your way to having a totally different financial reality.