Pay Yourself First

It doesn't matter how much you earn, it matters how much you spend. It seems as families and individuals earn more income they spend it as fast as they make it.

A basic principal in financial planning is to "pay yourself first." This means you should set aside a pre-determine amount each month out of your monthly income before you pay your first bill.

You should be saving at least 10 % of your gross income monthly; funding first your emergency fund followed by your investments. Depending on your age and desired life style you should consider even a higher percentage than ten percent.

Start with your employer 401 k plan especially if your company has some form of employee matching program.

Dan