Comments on: Pay Yourself First (Again)?

By: Automated Saving Makes Saving Money Easy - Amateur Asset Allocator

Automated Saving Makes Saving Money Easy - Amateur Asset Allocator — Tue, 09 Feb 2010 00:36:25 +0000

[...] to paycheck, it seems there is rarely ‘left over’ money after the bills are paid. But not paying yourself first, even if it comes in the form of paying down high-interest credit card debt, is a financial [...]

By: Four Pillars

Four Pillars — Thu, 10 Apr 2008 02:38:51 +0000

Thanks for the comment Ryan.

Mike

By: Ryan

Ryan — Thu, 10 Apr 2008 01:39:21 +0000

BB Although eliminating consumer debt before investing is a no brainer when comparing rates of return, I think most are better off paying themselves first.

Many (myself incuded) are not disciplined enough to pay off consumer debt and then invest, I suspect they (I) would just add new consumer debt as cash flow became available…. so many shiny gizmos to acquire, so little time.

my 2c..

By: Carnival of Personal Finance #112 « If You Want It …

Carnival of Personal Finance #112 « If You Want It … — Mon, 06 Aug 2007 19:51:50 +0000

[...] Four Pillars And A Baby’s Pay Yourself First (Again); [...]

By: Carnival of Personal Finance #112: Best Week Ever Edition | The Frugal Law Student

Mon, 06 Aug 2007 12:03:27 +0000

[...] Pillars takes another look at the standard “Pay yourself first” advice that we often read about and concludes that for some, it might not be a great idea. [...]

By: FourPillars

FourPillars — Wed, 01 Aug 2007 11:33:26 +0000

Thanks for the comment Matt. I’ve been in that situation myself and the most important thing is to get yourself onto the right financial path which it sounds like you’ve done.

I found the worst part was realizing that all the debt I had was just overspending on crap and now I had to struggle to pay it back.

Mike

By: Matt

Matt — Wed, 01 Aug 2007 11:20:55 +0000

For me if you’re living from pay to pay because the interest on your debt is so high its preventing paying it down then you’re too far into debt. I have a lot debt, but I’m working on reducing it and keeping getting everything under control, I’m paying Visa first and when that’s done then I’ll start paying myself. Visa has a very hefty -18% interest and if I were to invest that same money I would be happy to get 10% growth… the math just works better if I remove the debt.

Thanks for the link

By: FourPillars

FourPillars — Tue, 31 Jul 2007 02:05:49 +0000

Thanks for the comment BB – I agree that paying down debt is considered saving. Unfortunately most financial advisors will push the investment side of saving rather than the debt repayment since one options increases their income and one doesn’t!

Mike

By: Brip Blap

Brip Blap — Tue, 31 Jul 2007 01:29:50 +0000

I think that usually the idea is that “pay yourself first” could also include debt repayment. If you look at it that way, then it makes sense. I do agree that there’s no sense investing in the market if you still have consumer debt. Any financial advice that pushes saving before eliminating debt is doing a disservice to whoever follows it.

By: FourPillars

FourPillars — Mon, 30 Jul 2007 19:56:32 +0000

FB – that’s a good indicator and sign that change is needed.

GS – good comment – if you can’t make your minimum payments then I’m not sure what you do!

Mike