Pay Yourself First

Posted by Grace under Personal Finance on September 21, 2013

What does Pay Yourself First mean? We often hear and read the phrase “pay yourself first” in most of financial literacy lessons, but many people don’t even understand what is it all about? This phrase is one of my favorite and one of my guide, consider also as my rule when I have my monthly income on my hands.

The reasons why I blog about my “total investment” is to easily record and track my financial status, wherein I could easily determined if my balance sheet is healthy, if assets is far bigger than my liabilities. So far, my asset is 100 times more than my liabilities.


I am interested in savings and investment, the “pay yourself first” rule help me to become a disciplined person, a disciplined investor, and by following this rule I became financially intelligent, I will explain to you now why I love this rule.

My Pay Yourself First Experience

When I began investing, I started investing via UITF which means Unit Investment Trust Fund, through BDO Banco de Oro Easy Investment Plan. I know I can set aside P2,500 monthly for my UITF investment within 5 years, because I’ve learned a lot of things in the “pay yourself first” rule, I just have the thinking that P2,500 monthly is for my future and for my family, then why not set aside that amount of money.

The second investment experience is when I invest in mutual funds, before I invest in mutual funds, I study what is mutual funds all about, the top performance and the most reliable mutual fund company in the Philippines, so far I am investing in two mutual funds companies in the Philippines where in I invest P2,500 each of these mutual fund companies, I believe in the reward of “pay yourself first”, that’s why I dedicate and commit another money amounting to P5,000 every month in my mutual funds investment.

The third is the stock market investing, I love being a stockholder of my favorite companies that I believe will last until I saw my grand children. There is Ayala Corp, SM Prime Holdings, PLDT, San Miguel, Meralco, Jollibee, Universal Robina Corp., and instead I save money in the bank I bought shares in these leading banks such as BPI, BDO and Metro Bank.

I decided to invest money amounting to P3,500 in the stock market monthly, so far I have P11,000 for UITF, Mutual Funds and Stock Market, a P11,000 payment for my self. That is how I follow the rules of Pay Yourself First.

Another money that I set aside is for my “life insurance”, insurance will protect not just my investment and businesses but also my family. I will never use this insurance but it’s good to be safe and insured.

When my businesses grow, I will add more money in my investments, that’s how I pay myself, I will pay it aggressively. With discipline and strong determination. I can achieve my ultimate goal in life, to become happy and rich, to have time and financial freedom and to get my retirement target earning asset.

How to follow Pay Yourself First rule?

You must only have to think that this is a “must follow” rule for the preparation of the future. If you want a good and bright future, pay yourself first by setting aside your savings and investment before buying anything and paying your utility bills such as electricity, water, etc. If you know how to manage your money, then this rule is very easy.

Remember, the pay yourself first rule is the best rule you must follow if you and your whole family want to become wealthy. No excuses, no delays, invest now for a brighter future.

Other Interesting Topic: Time and Compound Interest are Best Financial Allies

Happy and Rich

Money Quote and Saying for the Day:

Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort. ~ Franklin D. Roosevelt

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