Pay Yourself First?

The origin of "Pay yourself first" is perhaps the most important lesson from the "The Richest Man in Babylon" book by George S. Clason.  The novel, with lessons on finances, takes place in Babylon where working class individuals are inquiring to their wealthy friends on how to become wealthy. One said advice was to "pay yourself first".

What does it mean?

It doesn't mean spending money on yourself but to save it for your future self. According to the book, we ought to put aside 10% of money earned on our future self. Once we've accumulated enough, then we can use some of that money for investing - only investing the money we can afford to loose.

A friend of mine spends all her money because "she doesn't know how long she has to live" and was using that as an excuse. Her philosophy isn't wrong but it's not uncommon for people today to live well into their 80s.

"You can be young without money, but you can't be old without it" 

-Tennessee Williams

Today, not only are people not saving (sometimes they can't) they borrow from their future selves instead - putting themselves in a situation they can't get out of. 

How you live is up to you but I would encourage you to find ways to save money. You'll sleep better at night with a nest egg than without one.