Monday 182: Paying Yourself

Monday, 4 January 2016

I set up automatic transfers from our checking to our savings account, beginning this month.  These transfers will come out on the 1st and the 16th, one day after payday. The monthly total will be 1000.00 per month, which is a fairly substantial part of our monthly income.  This money is hopefully off limits altogether, though it is also there for emergencies.

Our checking account will be used to save for things like property taxes (due in December and in April), paying the accountant in February, paying possible federal and / or state income taxes, and some recent unexpected medical bills.  Thank goodness for health insurance and low deductibles and copays!

“Piggy Bank” by GeorgHH. Licensed under Public Domain via Wikimedia Commons.

Paying yourself is really hard to do.  That means you have to save money, and not spend it frivolously.  This means keep cash in the bank, have money for emergencies, and, when possible, use it to buy funds or stocks.   All these are investments in yourself.

The fact is, many of us don’t believe we are worth these kinds of investment.  Money is something not to be discussed. I think sex is probably more readily discussed than the way we spend our cash.  I know when I was a kid, money was the most forbidden topic in the household – it was off limits, period.  Adults talked about money, in secret, away from children, and children remained children even as they moved into their 50s or 60s!  Kind of weird, but that may be the way an older generation was.

$1000.00 a month will be 12,000.00 by December 2016.  Let’s track this puppy!  And, ya know, it feels really, really good to be making this commitment to saving.

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