The First Rule of Personal Finance & Happiness: Pay Yourself First!

In personal finance it’s the concept of Tithing: You always put aside or withhold at least 10% of your paycheck for savings and investments. You only spend what you have left over. This way you never get ahead of yourself and live beneath your means while investing in the future. 

This concept is very important and you need to do the exact same thing with your time. 

Yes, you are very busy and have family and work obligations. But your first hour or hours of your day are critical. You need to put this aside for yourself. Whether it’s meditation or exercise or even just mentally preparing and planning of the day. 

Probably more importantly, use this time to work on your personal projects and side hustles. This is an investment in yourself. This is a crucial step towards financial and personal freedom. Pay yourself first. 

I talk to so many people who complain about their life and how they want to quit a crappy job. And that they are too busy and have no time to work on a side hustle or a business idea. When I hear this, it just means it’s not a big enough priority to find the time. If you can’t find the time, it just means it’s not a big or clear enough priority for them. 

The way to get past this is to pay yourself first. Just put aside one hour first thing in the morning and get to work. Do this consistently for a few weeks and you may be surprised by what you are able to accomplish. 

Transform your time into money. Or just invest in your own personal development and mental health. You owe it to yourself. This is just one more thing I wish I had started doing way earlier in my life.  

As Naval says: "Guard your time. Forget the money."