I first came across the term “Pay Yourself First” in Robert T Kiyosaki’s book “Rich Dad Poor Dad” and I thought to myself “How can I pay myself when I am working for others?“.
Then again I learned something from Rich Dad Poor Dad…… that is “Don’t work for money, let money work for you”. Another simple but mind boggling statement. What Robert Kiyosaki meant by “Pay Yourself First” in not so many words is actually to have self-discipline. The power of self-discipline!! If you do not have control of yourself, do not even bother to try to get rich……
And if you are on the quest to learn to invest, you are indeed trying to get rich, so there, listen to the financial gurus….. It make no sense to invest, make money and blow it. It is the lack of self-discipline that causes most lottery winners to go broke soon after winning millions – people like to say this “easy come easy go” and it is true because what the lottery winner is lacking is “self-discipline”.
You see, it is the lack of self-discipline that causes people who get a raise to immediately go out and buy a new car or take a cruise.
The Richest Man in Babylon, by George Classen, is where the statement “Pay Yourself First” comes from. Millions of copies have been sold but while millions of people freely repeat that powerful statement, few follow the advice.
WHY? Plainly lack of self-discipline!!