Wednesday, 27 April 2016

Do you pay yourself first?

Wait. Read this post.
Payments are a part of life, they are unavoidable, without them we wouldn't have any necessities.

Some people are just not so great with this. I wouldn't classify myself as being one of those people. However I am one of those who likes to wait until the very last minute to pay the bill.

I will explain why I stretch it out to the very last minute. Either way the bill has to be paid before it's due date. Yes your credit will get fucked if you constantly miss your payment due date. So why wait?

Well I have learned that paying yourself first is more important than paying your liabilities.

It is true.

Which are you?
What if an opportunity presents itself and guess what you paid the bills first so you are left with not enough for this opportunity of reinvestment. "There is always a chance to make more money with the money you have".

When I suggest reinvestment I am not talking about buying luxury. A nice watch, an expensive T-shirt, or a some brand new Nike's. I am talking about putting money into an asset not a liability. Let's break this down further.

Of course image is everything. You want to look sharp, and be overdressed , because first impressions leave a lasting impact.

So what I am saying is if it is an investment that will better YOUR brand than go ahead and invest. However if your just after those shiny objects than paying the bills first should be your priority.

Have a backup plan, when you reinvest, if you cannot pay your bills on time, what will you do? Will you ask for help, ask for an extension, or will you just let your credit go to waste?

Now if you don't reinvest and you are just planning to put the money aside into a low bearing interest savings account then pay your bills right away because it will make no difference on your money.

Having clients who are late on payments frustrates me the most. I am not talking about paying them on their due date, I mean when they pay them after the due date. Even worse when they act oblivious.

I make myself miserable, not having the patience makes me more irritated and stressed. But it's not the actions of the other person that's doing it. It's my own mentality, my own patience that I take for granted.

According to Yes magazine, patient people enjoy better mental health. It is true, patience is a virtue. I need to get out of my head with the "What if they don't pay me at all?" "What if they die?" "What if they move away and I can't find them?".

It truly is a waste of time and mental energy conjuring all these pointless assumptions. If they don't pay, sue them. If they die, make sure in your contract it is written their insurance covers your ass, If they move away hire a private investigator.

If you can't find them, well it is your fault for investing in them in the first place. So next time don't, or get collateral to cover any and most of the losses.

Pay your bills, do it when they are due and no sooner or later. But if you are terrible and forget things then pay them when you get the notice to pay.

"Don't judge each day by the harvest you reap. But by the seed that you plant." Robert Louis Stevenson.

What you choose to do with this information is up to you.

To be continued....

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