What do you mean pay me first? – Nerd Finance 1

In this video Ian goes over what Paying Yourself First is and how to go about doing it.

What’s up internet my name is ian bloom and this is nerd finance i’m your resident financial life planner and a huge nerd since this is my first video i wanted to give you a rundown of what you’re in for this is a series of informal financial videos that answer questions that i get every day so i’ll drop in a few nerdy references to try to make things fun but

Ultimately you’ve been forewarned this is financial content so paying yourself first is our topic today and not in the traditional way it’s been addressed most people talk about paying yourself first on articles videos blogs it’s it’s all over the place because it is such an important part of planning but they don’t really discuss why you should do it what you

Should do it and they definitely don’t reference runescape so to start off with let me get to the runescape reference paying yourself first is all about incremental gains right it’s about accumulating money over time that would otherwise be used for going out to eat or something well runescape is all about delayed gratification and an incremental gain also so

In runescape you might get 25 xp per mining copper but to get your mining level up you might need 1500 xp that means you’re gonna have to mine a lot of copper to get there however doing that has its own reward at the end of it you have a higher mining level you can do other stuff it’s pretty similar in the real world saving money over time allows you options and

See also  Finance Charges

Choices so here’s the good news you already probably pay yourself first somewhere most people save in a 401k or retirement plan overtime and that counts that is paying yourself first it means that you’re deferring some of your paycheck without the ability to interfere with it to a retirement account and while retirement accounts don’t count as an emergency fund

Because you really shouldn’t be accessing them ahead of retirement in most circumstances they do still have incremental gains over time and there can be a very significant amount of your retirement income stream later on another place you can pay yourself first is in banks through automatic transfers from and checking to your savings account they’re pretty easy to

Set up at most banks and all of that needs to be is maybe $25 a month or whatever feels comfortable for you but having that move from your checking to your savings account whatever the amount that is comfortable for you will accumulate over time and it’ll save you from the next pops tire or or broken water heater or something like that that would otherwise be put

On your credit card and accumulate interest now that’s not to say credit cards are all bad because in some cases if you pay off your credit card every month you are actually paying yourself first in a small way credit card points and miles are a good thing to accumulate for travel purposes or for some of the niceties in life the luxuries that we like to spend our

See also  Mezzanine Financing Part Two

Money on let’s face it people like to take vacations and so you would probably be spending money on vacations anyway well if you accumulate those travel miles instead and you use those instead of mostly money to fund your vacations then that’s somewhat saving money as long as the money that you didn’t use on the vacations ends up in your savings account of course

So last place to pay yourself first or last way you can is to accumulate money for other investments whether that’s a brokerage account or roth or other types of savings you may have extra at some point in your life and accumulating that will only help you in the long term now what vehicle you use might be dependent on your individual situation so i’m not going

To recommend specifics here today but that’s all for today the video was probably a review for some of you so i promise we’ll dive into something more intricate and complex next episode if you have any ideas for future episodes or you would like to engage with me i’m at open-world fp on twitter at nh bloom there for me and division you can also find my company on

Facebook and linkedin lastly in bloom at open world fp comm is my email and you can find my website open world fp comm where you can also look at what my services would be like as a financial life planner if all this sounds like a lot to you thanks so much i hope you have a great day

See also  XRP will Explode! Discrepancies on ForbesCrypto, Yahoo Finance, BNC, Coinbase, Binance

Transcribed from video
What do you mean pay me first? – Nerd Finance 1 By Open World Financial Life Planning