Summary

The article emphasizes the importance of prioritizing personal investment in time and money management for achieving financial freedom and personal growth.

Abstract

The article "How to Gain Financial Freedom? Pay Yourself First — Everyone Else Can Wait" discusses the concept of investing in oneself as the key to financial freedom and personal development. It suggests that individuals should prioritize their own time and money before other obligations, such as bills and luxury expenses. By dedicating at least one hour a day to personal growth activities like reading, exercising, and learning new skills, and by allocating money to income-generating assets and personal development before paying bills, individuals can accumulate valuable assets, improve their well-being, and potentially increase their wealth. The author shares personal experiences of neglecting self-investment and the benefits observed after implementing the strategy of paying oneself first with both time and money.

Opinions

The author believes that time is the most important asset, even more so than money, as it is non-renewable and should be prioritized accordingly.
It is suggested that by setting aside time for personal development each day, individuals can make significant improvements in their lives, leading to the accumulation of intangible assets.
The article posits that paying oneself first with money, either by investing in income-generating assets or in personal growth, can lead to a sense of urgency that may result in increased earnings.
The author advocates for a balanced approach to personal investment, ensuring that it complements work and family life without becoming excessive.
There is an opinion that investing in oneself is not selfish but rather beneficial to others, as it enables individuals to enhance their skills and contribute more effectively to society.
The author recommends making investment a habit, even during financially challenging times, as it can quickly change one's financial status.
The article encourages readers to take control of their lives by investing in themselves and suggests that becoming a Medium member can provide access to a wealth of articles that support personal growth.

PERSONAL GROWTH STRATEGIES & STORIES

How to Gain Financial Freedom? Pay Yourself First — Everyone Else Can Wait

You are your biggest asset

You wake up in the morning, stuff in some breakfast, and run for work.

You work 10–12 hours and come back home tired.

You get some dinner and watch some TV (or Netflix).

Then you go to bed.

The next morning, you repeat the whole process.

Has the above ever happened to you? It has to me.

You get your salary.

You pay taxes — if your company hasn’t already.

You pay the bills. You pay off any mortgage or personal loan payment.

After that, you are left with little. Some of that you use for luxury items or entertainment. Sometimes you invest that money.

Have you ever done that? I have.

And in both cases, I believe I missed an important first step.

I should have paid myself first

I should have paid myself with two types of assets. Firstly, the most important asset — Time. Secondly, the more obvious one — Money. Both of these are finite resources. Time is more finite and keeps depleting on its own. Money can generate more to make you wealthier. And maybe it can grant you some extra time.

So, what do I mean by paying yourself first? Let’s find out —

Asset 01: Pay Yourself with Time First

We have 24 hours in a day. If you spend 7 hours sleeping, 1-hour eating, and 1-hour taking care of yourself (brushing, shower, etc.), then you are left with 15 hours.

Before you make any plans for the day, figure out how you will spend at least 1 hour on yourself. That 1 hour should be prioritized over anything else.

Day by day, you will be accumulating assets beyond imagination. That will definitely make you feel better and get closer to your goals.

There have been days when I was so busy that I skipped exercising. I postponed spending time on myself. Eventually, I got everything else done on that day except for spending time on me.

If we start the day with some me-time, the tone gets set. A morning person can even accommodate all of that 60 minutes in the early hours. Others should still spend10–15 minutes at least in the morning to get started.

We can’t delay most of our daily commitments like work, eating, commute, etc. So, if we delay me-time, that might be as good as canceling it for the day.

What should you do with me-time?

Watch some Netflix. There’s a new excellent show.

Just kidding.

Use that time to invest in your mind by reading, researching, praying, meditating, and learning. Use that time to develop your body by exercising. Use that time to learn a new skill or work on a weakness.

Once you get started, you will see that 1 hour is not enough. You will eventually want to spend more. Life may not permit everyone to do that. In that case, try to not go below that 1 hour every day.

I am using my 1 hour to exercise and read. I know I’d benefit more if I can spend some time on voice training, and learning other skills.

I also don’t want to overdo me-time as I need to balance work and family time. When I was younger, I had more time but I wasted a lot of it. But I don’t want to delay personal development time anymore.

Once you start investing in yourself consistently, you will see positive changes. You will become healthier. Your mind will be well-nourished. Your weaknesses will get mended and your skill-set will get upgrades.

Asset 02: Pay yourself first with money — Bills can collect dust

Before you pay your bills, pay yourself. This is tricky but has its benefits. I have written about it in my review of Rich Dad Poor Dad. I am not asking you to stop paying bills. But by paying yourself first, you create urgency. That can lead to earning more.

Paying yourself can mean two things — You can invest in income-generating assets or You can invest in yourself.

I suggest you do both.

If you seek financial freedom or a retirement fund, income-generating assets are crucial. Every month, you should allocate money to buy assets.

Your personal growth is imperative as well. A portion of your paycheck can go to buying books, courses, gym membership (if you use it), and anything else that will enable your development.

I followed the ratio suggested by Tony Robbins to make investment a habit. I tried doing it even when my salary was reduced due to COVID. Trust me, investments create a cushion that changes financial status very quickly.

I also bought myself a course to develop my voice, and I regularly buy books.

Maybe you feel selfish investing in yourself.

You shouldn’t.

If you become more skilled and a better person, you can help others more.

What you don’t want is going fully with the flow. Take control of your life by investing in yourself.

See you in 12 months :)

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