Pay Yourself First!

The recession has brought not only stress, but frustration, sorrow, and many complications to the lives of millions of people that have been forced to lower their standards of living.

"As soon as I receive my paycheck, it takes off as fast as an F-15 from the USAF."

Those were the words of my friend Susan Johnson, a waitress in Ithaca, NY. “I serve meals to dozens of people every week, but when I want myself to be served I can not afford to go to a restaurant.” She added.

Susie is not alone, the middle class has been squeezed so hard that it has become an endangered specie and those in poverty have been reduced to the misery of bare survival.

Like many of us, during long time Sue anticipated the needs of her loved ones before hers and it seemed that there was never a penny left when she wanted something. There are not many Americans alive who remember the economic tsunami of the 1930′s, but I have the experience from the economic crisis in Mexico and Germany where I lived before I immigrated to the USA and I shared with Susan my knowledge.

"Eliminate your most unnecessary bill and pay yourself first."

 Susie cancelled her telephonic land line and switched her cell to a prepaid plan. Her savings wee substantial and now she is not only able to dine on pay day, but feels rewarded for her daily effort at work. Lack of satisfaction from our occupation produces depression, sadness, even anger in some people and it is imperative to include ourselves in our budget to avoid distress.

Back in 2008, when the price of gasoline started to insanely clime, a big chunk of my money was literally on wheels and I decided that enough was enough. I sold my fuel guzzler truck and bought a fun Kawasaki for my daily commuting.

At least 10% of an individual’s income should be for personal joy, so even those earning minimum wage may go to a movie, buy some desired clothing, or any other object of satisfaction. It is just a matter of the re-structure of our expenses and my fellow American have to understand that the days of waste and excess of bonanza are over.

During our lunch at this fun restaurant my friend ask me how to save money for a vacation with her limited income.

I told her to delete another useless bill and place that money in a savings account. She was paying too much for 180 channels of cable that she hardly ever watched, so she cancelled the account and discovered that the local channels she received in her converter box is all she needs to keep her informed of the daily events in her community. She bought a copy of my book Letters from Frank: An American Terrorist’s Life, rediscovered the joy of reading and does not missed her cable service at all. One year later she treated herself to a weekend in Las Vegas where I had the pleasure to take her around town.

The old idea to put into savings what is left from our paycheck is an outdated concept that does not work in a weak economy, because there will never be any money left.

We have to dedicate another 10% of our income into savings to actually get somewhere with our resources. Before you know, you will have enough funds for what you feel it was impossible to get. There are many other things we can do to combat inflation and high prices and by helping yourself, you help your community and the country.

I was tired of paying huge electric bills to the monopoly of NV Energy, so I switched all the bulbs in my apartment for the new energy efficient ones and at the same time by going green, I helped our planet by reducing my carbon footprint. I can now count my savings.

You don’t have to be an economist to improve your life and the one of your loved ones, just use your common sense and stop giving your money away to others.

Never forget to pay yourself first!

Author Ingrid I. Holm-Garibay

Subscribe to Ingrid News at: http://www.ingridbooks.com