Want finacial freedom? Have a play with the 10% account.
When you pay you first with the 10% account, you are demonstrating your willingness to value yourself.
When I was $187,000 in debt, one of the first tools I implemented that really started turning my financial situation around was a ridiculously simple one: Put ten percent of all the money that comes in (that’s the before tax amount!) into an ‘honouring of you’ account – always use that 10% to pay yourself first-before you pay any other bill, and never, ever touch it! It is not a rainy day fund. It is money that you have to watch grow – forever.
Sounds crazy? I thought so at first. I actually heard this tool countless times before I realised that I had to try something different if I desired my finances to change. I also realised that the worst that could happen is I would end up with some money that I would have to spend!
So, what’s the point of having a pile of money you never spend? And why is it so important to pay yourself first, before anything or anyone else?
Paying you first breaks the ‘self-debting’ cycle
Self-debting is such an epidemic in our culture that ‘debtors anonymous’ groups actually exist to help people stop being compulsive ‘self-debtors’. A self-debtor is someone who continually puts themselves last on the list of who gets to receive anything – money, kindness, joy – you name it. As a self-debtor, you will put your bills, credit cards, loans, other people, your dog, just about anyone above you on the “who gets to receive” list. We are told over and over we supposed to give, not receive, and to do otherwise is selfish. The funny thing is, when you start to honour yourself, you begin to have more available in your world to contribute to others as a result.
When you pay you first with the 10% account, you are demonstrating your willingness to value yourself. You may find that the energy in your relationships, career, health and all kinds of other areas begins to change as you honour yourself with money … it’s kind of contagious! You may also begin to recognise other places where you have been putting yourself last and start asking – where else can I be more honouring of me?