I think I've discovered the secret road to riches......

**PrairieRose** · 02-06-2004, 10:26 AM

I've been thinking a lot lately about being frugal, making a huge difference in our lives regarding money...etc. . The one thing that really strikes me now is this. It seems like no matter how much money we make or don't.....there is never "that much" left over. I had read "The Richest Man in Babylon" recently and the biggest tip that this book had to offer was to pay yourself 10% first. It went on to say that no matter how much you make your living expenses always seem to expand to the amount. I had an "AHA!" moment just then. I've always heard about paying yourself first but when we had so much debt that felt "wrong". It felt as if we SHOULD pay everyone else and then ofcourse there was nothing for us. We've been paying ourselves first now for about 6 months and I can tell ya, it really, really adds up fast! The principle in the aforementioned book said 10% of all money that comes through your hands and that 's what we've been doing. It's already added up to a few thousand $'s. Anyone else do this? If not, have you considered it? I actually think it could be the road to riches.

**homesteadmamma** · 02-06-2004, 11:13 AM

Lisa, I've thought about it lots and have done it on several occasions during the years. I've never got to 10% though.

I think along with the paying ourselves first, if we tithe (be it to our church or charity of ones choice) and then pay ourselves first before anything else, were well on our way to riches.

Great thread.

**guest2** · 02-06-2004, 11:26 AM

We tithe 10%+ right off the top. We do need to get into the habit of paying ourselves also and this is something that DH and i have been talking about lately.

**Guest1** · 02-06-2004, 11:27 AM

Sounds like a great idea Lisa!! I just can't see where it would work for us! We always have to much month at the end of the money as it is - if we paid ourselves, our phone would be ringing non-stop with our bill collectors!! well - I guess it would ring until SBC turned it off!!

I really hope it works for you guys though! Let us know!!

**PrairieRose** · 02-06-2004, 01:42 PM

I'd like to really recommend the book I mentioned above. It talks about that very thing. It's been exactly the same for us, always. This really works. Tithing is also something works too. It's important to do it before you consider the bills, but the book explains it better than I can.

**simplemom** · 02-07-2004, 10:33 AM

I like this idea...

I'm going to try this...

**Shell** · 02-09-2004, 09:25 PM

It was based on the theory of pay yourself first that I started doing "The Emergency Fund Challenge!" It is the only way I was able to save money by putting a little away each and every month. We almost have $5,000.00 saved because of it.

**PrairieRose** · 02-10-2004, 09:29 AM

Shell you've made amazing progress. Good for you girl!

**Shell** · 02-10-2004, 10:32 AM

Thanks. I was kind of shocked myself. I just put away a little every month and don't have a debit card to that account so I am not tempted when I am out at the mall.

**graci42** · 02-12-2004, 06:51 AM

Which is going to be more cost effective...putting 10% of your income into a savings account at 1.25% or paying off your credit card that is eatting 23%.

Better to pay off the credit card FIRST!

**milach** · 02-13-2004, 08:37 AM

Originally posted by graci42
Which is going to be more cost effective...putting 10% of your income into a savings account at 1.25% or paying off your credit card that is eatting 23%.

Better to pay off the credit card FIRST!

That is very true Graci- but I have read about this before and I think one of the ideas behind it is is say you're paying off your credit card and have zero savings. Say if one or both of you ends up losing your jobs, you'll have to live off your credit cards. If you have a couple grand saved up, but no room on your cards, atleast you'll have cash for groceries, heat etc without incurring more debt on your cards. I know, it's probably six of one, half dozen of another. But atleast if something were to happen, you'll have a little stash to continue making payments until you can get back on your feet.

But I have been doing something similar to this. DH got a raise at the beginning of the year. Every week, I write out a check for the amount of his raise and I put it into a separate account at a different bank. It really does add up, and it's not like we're used to that extra spending money, so we're not missing it by not spending it.

**PrairieRose** · 02-15-2004, 12:42 PM

It's very important to have a little bit stashed back for a rainy day first but paying those high interest credit cards off should be a priority for anyone carrying balances. VERY, very important.
We don't carry a balance on ours', hence we have more money to put back every month.

**kittykatstrong** · 10-15-2008, 03:36 AM

I have heard of this but never put like that. My DH, who I love with my whole heart, will spend money if it is sitting in the checking account. I think this is a great idea.

**amanjud** · 10-15-2008, 05:00 AM

We've been saving since August, not 10% though, only $25/wk. I also round up in the checking acct, and at the end of the week I put whatever the difference is in the savings acct, it usually adds up to about $10/wk. It's a very painless way to save a little more.

**Bournecrazy** · 10-15-2008, 06:21 AM

i pay myself first, like tomorrow i get paid and every two weeks after so i know how uch in bills i need to pay out, whatever is left i round down to £100 and i will save the rounded down amount. like tomorrow will be something like 200, i will save 100 and put it into various saving accounts

but some weeks are a lot less like 30.00/40.00