Pay yourself first

Most people pay everyone else first — taxman, landlord, credit-card company, and so on. They try and budget every week, month, and year hoping that if they’re careful they’ll have some money left over.

David Bach says this in his post the other day. “Pay yourself first” means just what it says: When you earn a dollar, the first person you pay is you. Sounds simple, but most people don’t do it., he continues.

But he is right, isn´t he? We always say that the business will be better off later on, or?

David Bach Also says that before paying tax we should use the possibility with a retirement account. $14 a Day Could Grow Into a Cool Million as he says. It works different in different countries but in US there are many different types, including 401(k) and 403(b) plans, IRAs and SEP IRAs.

He also set up an interesting goal: Your goal should be to save one hour a day of your income.

David Bach has authored six consecutive bestselling books, including “The Automatic Millionaire,”

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