Posted on September 30, 2008 at 8:57 am Many self-help books, including The Richest Many in Babylon, advocate the age-old practice of paying yourself first i.e. saving a specific amount each week from your gross wage or salary i.e. your total earnings before tax or other deductions.  The recommended amount is 10% , but if you are new to this concept, 5% would be a good starting point.  These savings need to be moved to a separate bank account immediately, one that is not easily accessed, to create the discipline necessary for you to leave it there long enough to accumulate.  This is not spending money - it's pointless to go to the trouble of setting this all up if you are going to plunder the account to buy those divine shoes you must have.  There are two benefits to paying yourself first: 1.   You have emergency money - cash money - if you need it quickly for an unforeseen event or illness. 2.   You force yourself to re-evaluate all your spending patterns.  Since you have less money to work with, you are more careful about what you do with what you have. Our grandparents always had something put away "for a rainy day."  Perhaps that wasn't such a bad idea.

Posted on October 1, 2008 at 3:13 am Thanks for the in depth explantion of caring for our own needs and also to save money.It is indeed forgotten method of saving money.I will use this from current month onwards.

Posted on October 9, 2008 at 1:54 am That's ok.  I do this myself, so I know it works.  I hope it's successful for you, too.  And of course, once you have built up a nice little "stash", it's ok to use some of it to purchase things like new furniture items, TV's, computers etc. that you might normally put on credit.  You can often get good discounts for cash, and you don't have that credit card debt hanging over your head.  But don't spend it all - you never know when you might need it.

Posted on February 7, 2009 at 4:53 pm I am new to this concept myself, and often try to rationalize why I would pay myself first when I have so much debt, and very little income.  The fact that my income is "so small" is the reason that I decided to start paying myself first.  If something does happen in the future, at least I will have "something" because I won't be borrowing money, and I definitely won't qualify for a loan, so there has to be a "little stash" somewhere. 

Posted on February 8, 2009 at 10:13 am Karen, it is indeed that logical, ancient formula, but it doesn't work (at least for me). I did that those days; getting that exclusive, geographically distant, inaccessible account. But on the other hand, this powerful mind will justify that, this particular saving should now go for that invaluable, worthwhile investment.  And poof there it goes! If you have the ability to deposit, you will also have the ability to withdraw. But I have got a much more effective strategy, which is not really a strategy. Reduce your wants and deposit that excess income over expenditure. Look at the things in and around your household. There are so many that you don't use and are catching dust.  From day one, we are taught to sophisticate our needs. We are told that Coke quenches our thirst better than the plain water. We are shown that the leather settee is more comfortable than the foam-stuffed sofa. So, reduce you wants, go back to basics and deposit that excess savings which could even be more than 70%. 

Posted on February 9, 2009 at 12:58 pm If you are worried about "withdrawing" your savings, maybe you could check into a purchasing a CD, where you will not be able to "withdraw" the money for say "six months."  You get a savings and interest!  And that's just what I might do with my own "emergency fund" this year.

Posted on February 9, 2009 at 10:01 pm Reduce my wants, hmm, the problem is being able to reduce the wants of other family members. I hate being the bitch who says No! all of the time.Any ideas on how to get a husband to jump on the money saving bandwagon?

Posted on February 10, 2009 at 1:18 pm Buggles, of course, those fixed deposits always helps. Carolyn, somehow the Law of Attraction towards the Opposites prevail all the time. We always endup with a partner who is of the reverse nature. Simplicity is the way of life.  Probably, you should get him to do meditation, that may cleanse his desires.