Investing 101: Pay Yourself First.

Why even bother saving or invest when you can simply spend it all? you only live once right? Wrong, here is why you should aim to save/invest a minimum of 10% of your total income and gradually increase it when you are able to.

It helps you save money. When you pay yourself first, you are automatically setting aside money for your investments before you have a chance to spend it on other things. This can help you reach your financial goals faster.

It helps you stay focused on your long-term goals. When you pay yourself first, you are making a conscious decision to prioritise your future over your present. This can help you avoid making impulsive spending decisions that could derail your financial plans.

It helps you build wealth over time. When you invest your money, you are putting it to work for you. Over time, your investments can grow and compound, helping you build wealth that can support your retirement, your children's education, or other financial goals.

Here are some tips for paying yourself first in terms of investing:

• Set a goal. What do you want to achieve with your investments? Do you want to retire early? Pay for your children's education? Build a nest egg for a rainy day? Once you know what you want to achieve, you can start to create a plan to reach your goal.

• Automate your savings. The easiest way to pay yourself first is to automate your savings. This means setting up a direct deposit from your paycheck into your investment account. This way, you won't even see the money and you'll be less likely to spend it.

• Invest for the long term. When you invest for the long term, you give your money time to grow and compound. This means that even if your investments experience short-term losses, you are more likely to come out ahead in the long run.

• Rebalance your portfolio regularly. As your financial situation changes, you may need to rebalance your portfolio to make sure it still aligns with your goals. This means selling some of your investments and buying others to maintain a certain balance of risk and return.

Paying yourself first is a great way to reach your financial goals. By following these tips, you can start to save and invest for your future today. Thats it for today, until the next episode, cheers.