Atharv’s Chronicle 21-04-24 : Pay Yourself First!

Hey everyone,

Have you ever heard of the phrase ‘pay yourself first’? It’s a concept in personal finance that emphasises setting aside a portion of your income for savings or investments before anything else.
Say upon getting our Income (Ex: Salary) immediately putting aside a certain % (15-20%) of it to savings/investments through automated SIP’s, PPF’s or similar options!

When you pay yourself first, you’re mentally establishing saving as a priority.
Paying yourself first encourages sound financial habits. Most people spend their money in the following order: bills→fun→saving. Unsurprisingly, there’s not much left to put in the bank. But if you put savings to the front: saving→bills→fun you’re able to set the money aside before you find reasons to spend it.

I recently came across this idea and found it profoundly impactful in more areas of life than just money.

Imagine this scenario: You’re at a restaurant having a buffet dinner style, and there’s a variety of dishes.
Usually, we’d fill up our plate with the main courses and leave a small space for the vegetables or salads. But what if we applied the ‘pay yourself first’ principle here? We’d prioritise filling our plates with nutritious vegetables first, ensuring we get the essential nutrients before involving in other items.

I experienced a similar revelation during a recent workout at the gym. Rather than saving the toughest exercise for the end of my workout, applying ‘pay yourself first’ principle – I push myself to start with the difficult one first. This not only builds my physical strength but also a mental resilience.

This mindset shift extends beyond meals and fitness. In our daily routines, we spend most time addressing the simple tasks or get succumbed to distractions before addressing the critical ones.

By ‘paying ourselves first’ in terms of time and energy, we can focus on what’s important and what truly matters, eventually boosting productivity and self fulfilment.

For instance, when managing our day, we could start with the most important tasks that align with our goals rather than getting lost in minor errands or digital distractions.

In relationships, if we apply the ‘paying yourself first’ principle, we should prioritise self-care and setting boundaries before addressing others’ needs.
It’s about understanding that our well-being is of primary importance and taking intentional steps to nurture it.

When approaching the end of the day, if we paid ourselves first, we’d prioritise getting 7-8 hours of sleep, rather than scrolling through Instagram until 3AM.

The ‘pay yourself first’ mindset is a powerful tool for intentional living. It reminds us to value our time, health, and resources, ultimately leading to a more fulfilling and balanced life.

So, I invite you to explore where else you can apply this principle in your life. How can you ‘pay yourself first’ in terms of your time, energy, and priorities?
Wishing you a week filled with intentional choices!
Atharv Prasanna