You’ve heard the advice countless times: Save for retirement. Accompanying that directive is always a whiff of depressing obligation – that in order to save successfully, you need to be relentlessly frugal, make constant sacrifices, be a Debbie Downer. It’s all so dutiful and painful-sounding that it’s no wonder that almost 50% of Americans save 5% or less of their household income.
Fortunately, there’s a way to avoid all that depressing talk about penny-pinching and still build a substantial nest egg. Our newest article on Yahoo Finance, The Best Way to Invest? Pay Yourself First, teaches you to change your mindset when it comes to saving money. It sounds difficult, but there’s a surprisingly simple way to do it: Pay yourself first. This approach designates you and your future as the number one priority. Instead of paying off all your bills and hoping there’s some left over for savings at the end, paying yourself first means just that: You set aside money for savings the day that you receive your paycheck from your employer.
Putting your financial future above everything else is a form of long-term pampering. Paying yourself first puts your long-term wishes and needs above all else — meaning that you’ll give yourself the opportunity to treat yourself during your golden years. Not to mention that you’ll be less stressed later in life, knowing that your money matters are on more secure footing.
It’s time to start the saving phase of your life. Who’s ready to write themselves a check?