Ballerific Finances – To Get Rich, You Must Pay Yourself First

How does an up-and-coming entrepreneur save money to keep their budding business afloat? Business Insider got tips from self-made millionaire and author, David Bach, and he offered up some great advice on saving. 

The key to getting rich as an entrepreneur is paying yourself first. As far as how much you should set aside, Bach says the magic number is 20%. So that means, every time you receive a check, you should be saving at least 20% of it. This will help achieve lifelong wealth long into your retirement. 

David Bach became a millionaire by age 30 and wrote the book “The Automatic Millionaire” so he obviously knows what he’s talking about. He does admit though, working up to being able to save 20% took time. He did not start out at 20% right away. My personal advice would be to set goals for yourself every year. Maybe start 2016 by saving 5% of your gross income. Then in 2017, challenge yourself to increase the amount you put away to 10%, then 15%, and so on. Not only will you have gotten into the habit of saving, but you’ll quickly work your way up to the magic 20% in no time. That’s what Bach did, starting from a mere 1% and working his way up.

“I was in my mid-twenties, and I wanted to make sure it didn’t hurt. Within three months, I realized that 1% was easy, so I increased the amount to 3%,” Bach explains. He goes on to say that after he got the hang of saving, he increased his percentage from 3% to 10% to 15% — until he reached 20%.

Saving money isn’t just for entrepreneurs. It’s for any and every one. As long as you have income, no matter the size, you can and SHOULD be stashing some of it away. Even if you aren’t making a buttload of cash, you will find how easily you can “learn” to live without the 1%, and can save without thinking about it. 

“If you are not paying yourself first now, that’s probably because you think you can’t afford to,” says Bach. “But I can tell you from personal experience that once you decide to pay yourself first and then you make it automatic, it’s done — and within the first three months, you totally forget about it. You’d be amazed how effortlessly you can learn to live on a little less.”

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