Pay yourself First

What is meant by paying ourselves first. Already company is paying us salary. So we already have money. Right? Its not true. When we get salary we have many expenses, bills waiting to be paid. And once the month finishes how much is left with us? Its nothing or minimum for some people. We paid all the bills but we didn’t pay ourselves. So the first thing we need to do as soon as we get salary is paying ourselves first. Open an account in a bank. Call it Financial freedom account (FFA). Every month as soon as you get salary, take 10% of the salary and keep it in that account. 10% is the minimum amount. You can choose more than 10% based on your necessities. You can ask me that already salary is not enough. Then how can I take 10% out and survive for the month. The answer is simple. If your are surviving the month with less salary than your expenses then you already know how to survive without that 10% amount. If not list out all your major expenses in the month and cut down the things which are not necessary. It always helps writing down on the paper. If you save like this for 10 years how much will be your savings? Its as much as you earn in 1 complete year(10% every year in 10 years will be 1 complete year income). Right? Not true.
The reason is that you wont be earning the same amount in 10 years. And more over you already planted a seed in your FFA. If you use this income to generate more income then the seeds will grow into plants and trees and give more fruits. Again when you get profits follow the principle Pay yourself first. So surely we will be saving more than we initially thought. Even a fixed deposits will give us good income these days.