A Financial Freedom Plan to Pay Yourself

July 27th, 2007 | Stacey | Financial Independence, Financial Freedom Opportunities, Financial Freedom

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Is it possible to put together a financial freedom plan to pay yourself? In the grand scheme of attaining financial independence, it seems necessary to pay yourself if you want to attain financial freedom.

The reality of the savings situation for most people in America is that our rate has dipped to minus one percent. This means we are cashing out more of our savings and putting less back into the ante. The sense of urgency to keep our heads above water today surpasses our desire for security tomorrow.

To add to the bleakness of this picture, only about twenty percent of people are holding up the current sad savings standard by keeping their investments in line and maximizing their IRAs. Take these fine folks out of the mix and we are saving at a rate of about minus five percent. Sadly, we were the biggest savers in the world just twenty years ago, so what is going on today?

Cost of living has dramatically increased, along with our desire to have what we want now, even if we cannot afford it yet. Primerica Financial Services offers the simple advice to people to pay yourself first. This means put money into your savings before you pay the bills. No one else will care about your retirement savings, nest egg or emergency fund, so you need to take care of it right away. A good way is to have a certain amount of money from your paycheck automatically deposited into a savings account every week. After a couple of weeks, you won’t even miss it and it you will already be accumulating savings.

Once you have handled putting money away for savings, attack one bill at a time. When a bill is paid off, increase your savings to include what you used to pay on that bill. In a year or two, you will be amazed the the progress you make with this financial freedom plan.