Pay Yourself First

Posted by Pekin Insurance on Nov 10, 2016

Most people fail miserably when it comes to saving money.  When the paycheck comes in, you pay for groceries, gas for the car, and other monthly bills. 

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2 minute read

 

If there is anything left over (a rarity for many people), you might try to set some money aside in a savings account, but unfortunately, that savings account is all too easy to raid when the next bill comes due.

 

Ask yourself this question: “If I saved as much in the next ten years as I’ve saved in the last ten years, would I be happy with the result?”  For most of us, the answer is a resounding NO! And if you’ve seen any of the financial news programs lately, you know that Americans have one of the worst personal savings rates in the world.  We spend our money rather than save it.  Most people say they would like to save more, but that new 65" HDTV sure would look nice in the family room!

 

To be successful at saving money, you have to make it a habit to “pay yourself first.”  This means setting money aside before you pay anything else.  That’s not always easy to do, but by doing so, the savings are locked in.  Your bills are paid from what is left, and you’ve taken care of yourself first.

 

One of the best ways to “pay yourself first” is by putting some money away each month in a permanent life insurance policy, especially if you can pay it directly from your paycheck or through an EFT withdrawal from your checking account.  The automatic deductions guarantee the money will come out first, before other bills are paid.  And while you can borrow money from the life insurance cash values, it is not as easy as going down to the ATM machine.  The policy acts as a “forced” savings for you. 

 

By deciding to set aside a portion of each month’s income in a permanent life insurance policy before you can spend it—in other words, treating savings just like a bill to be paid each month—you can soon accumulate a sizable sum of money and you’ll protect your family at the same time.  It’s never too late to start! Even if you can only set aside $25 to $50 per month, you will benefit by “paying yourself first.”

 

Talk to your local professional insurance agent for help in finding out more about how saving money each month in a life insurance policy can lead to a substantial nest egg or emergency fund and can help you have a more comfortable financial future.

 

  

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