Payday Routine: Do These 4 Things After Getting Paid!

Summary

In this video, the creator walks viewers through their payday routine, offering practical tips for managing finances. The focus is on prioritizing bills, investing for the future, saving for specific goals, and spending wisely on personal enjoyment. The creator emphasizes the importance of budgeting, paying off debts, and making more money through job upgrades. With a clear and structured approach, they encourage viewers to analyze their expenses, identify financial leaks, and work on improving their financial situation gradually. The video is both motivational and practical, offering actionable advice to build wealth over time.

Takeaways

• 😀 Pay your bills first: Prioritize essential expenses like mortgage, rent, and utilities before considering savings or investments.
• 😀 Avoid financial gurus who preach 'pay yourself first' if it compromises your ability to meet basic obligations like bills and debt.
• 😀 Pay attention to your monthly take-home pay: Track your income and expenses using a spreadsheet to stay organized and manage your finances better.
• 😀 Set aside money to invest: Even a small, manageable amount (e.g., $200) can help build wealth over time. Ensure this money is separate from other funds to avoid temptation.
• 😀 Save for specific goals: Whether it's a car, vacation, home down payment, or paying off debt, prioritize your savings for tangible goals.
• 😀 Treat your remaining balance as guilt-free spending money: Enjoy life, but make sure to do so wisely and within your financial plan.
• 😀 If you don’t have much left to invest or save, focus on increasing your income: A higher-paying job can significantly improve your financial situation.
• 😀 Look for a better job while you already have one: The best time to find a job upgrade is when you're employed, as it gives you leverage and reduces desperation.
• 😀 Don’t just cut expenses—also work on boosting your income: Reducing costs can only go so far; to truly get ahead, focus on earning more.
• 😀 Identify your biggest financial leaks: Track your spending to uncover the categories where you might be overspending, like dining out, entertainment, or shopping.

Q & A

What is the first thing the speaker does after receiving their paycheck?

The speaker prioritizes paying their bills first, such as their mortgage, rent, car payment, and other necessary expenses, before considering any investments or savings.

Why does the speaker disagree with the idea of paying yourself first?

The speaker believes paying bills first is more practical because failing to pay necessary expenses like rent or a mortgage can lead to serious consequences like foreclosure or eviction, which could harm your financial stability.

What is the importance of reviewing income and expenses monthly?

Reviewing income and expenses each month helps to track your financial health, allowing you to make necessary adjustments, stay organized, and ensure you're not overspending in any particular category.

What is the speaker's approach to setting aside money for investing?

The speaker recommends setting aside a realistic amount of money for investments each month, ensuring that it's an amount you can manage comfortably without sacrificing other financial priorities.

What advice does the speaker give when setting aside money for debt repayment or saving for goals?

The speaker advises setting a manageable amount each month for debt repayment or savings. Even a small amount is better than nothing, and the amount should be adjusted based on your financial situation.

How does the speaker suggest handling remaining funds after paying bills, investing, and saving?

Once the bills are paid, investments are made, and savings goals are met, the speaker encourages using any remaining funds for personal enjoyment, such as entertainment or shopping, without guilt, as long as the priorities are met.

What is the significance of not mixing investment money with other funds?

By keeping investment money separate, the speaker ensures clear organization and a reminder that the funds are specifically for building wealth, not to be touched for other purposes.

How does the speaker suggest people can increase their income if they don't have much money left after expenses?

The speaker advises focusing on increasing income by seeking higher-paying jobs or exploring other income opportunities. This approach is seen as more effective than simply cutting expenses.

Why is it important to be proactive about finding a higher-paying job?

Being proactive about finding a higher-paying job is crucial because it puts you in a position of power when negotiating. It's better to look for an upgrade while you are already employed, giving you more leverage during the job search.

What is the speaker's perspective on financial leaks and how can they be identified?

The speaker believes financial leaks, such as overspending in certain categories like dining out or shopping, can drain your finances. Identifying these leaks by reviewing your expenses on a spreadsheet can help you pinpoint areas where you can cut back.