Pay Yourself First and Become an Automatic Millionaire

Do you pay yourself first? Here's the thing about building wealth. The only way to build really big wealth and become the next automatic millionaire is to pay yourself first. It is the number one most single important financial habit that you will have to develop in your lifetime. It's a financial decision you will look back on and be ecstatic that you made it.

So what exactly do I mean by pay yourself first? It means that the moment a dollar comes in to your possession the first person to get paid is you.

If everyone in North America could be taught just one thing, this would be it. If we could only get people to make this one financial decision in their lives, we could change North American's lives forever.

Most people pay the government first in the form of taxes. Here is what you need to do, the only legal way to not pay the government first. The key word there was legal. The only way to pay yourself first is through a retirement savings account.

Now this may sound boring, but it works. Now let's do the math for an employee who works 40 hours a week. What you must do is save one hours pay per day for the rest of your life. That's the formula for a middle class retirement. So what's the formula when you wanna be rich? Well its simple all you have to do is save more thon one hour of pay per day. To be really rich save two and a half hours of pay per day. That may require a little overtime every week, or maybe try some part time or work from home ideas, but it is possible.

So let's say you earn $24.00 per hour or $50,000 per year. If you save that one hours pay - $24.00 time 5 days a week times 52 weeks per year that equals $6,240 per year. Now if you save that amount each year for 40 years at 5% you end up with $791,482, at 8% you end up with $1,745,827 and at 10% you could retire with $3,037,944. There are a couple of things that you probably noticed. First you have to start putting money into retirement and savings accounts from day one in the work force or the sooner the better if you want to retire earlier in life. Second, it makes a huge difference what the best savings interest rates of return can do for your investment returns.

Now here's the wealth secret that few people use. It's the secret that will almost guarantee that you will retire a multi-millionaire. The secret is you have to put this savings plan on automatic. By that I mean you get your bank to automatically take the amount you intend to save out of your bank account weekly or monthly and get them to put it in your retirement or your investment account. That is the only way I know for you to become the next automatic millionaire.

Now that you've got your savings plan on automatic it is time to go get a further personal financial education. You are going to want to learn about the cycles that various classes of investments go through so that you can switch out of the overpriced investment class before it crashes and always be buying the undervalued investments with the greatest chance of a high return. Remember all investments are risky if you are uneducated about the painful pitfalls that may come up. You are going to want to learn about savings accounts, saving bonds, stocks, real estate, and commodities such as silver and gold.

If only I had gotten my personal financial education sooner. If I had of listened to those gurus who were advising us to buy gold and silver coins ten or fifteen years ago. Instead of having the hassles of rental real estate and failed businesses, I could have had a low maintenance, low risk investment and retired early, a multimillionaire. It really does pay to look at the big picture and get a personal financial education.

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