Friday’s are paydays for a lot of people. The influx of cash in your hand in the form of a check or the increase in your online bank account is exciting. Some follow proper protocol on payday. They take the necessary financial steps to ensure their financial well-being. There are three things you should focus on each payday to ensure your financial life is on the right track.
1) Pay Bills:
Each time you get paid, whether it’s every week, two weeks or monthly you need to meet your liabilities. More specifically you need to pay any bills that are due before you get paid again. This could mean rent, a credit card statement or a car payment. Avoiding these payments will be a costly mistake to your credit score and will ultimately cost you more money in the long run with accrued interest.
2) Automatically Invest:
Each time you receive payment from your employer you should be investing in your financial future. This could be in the form of a 401k contribution with an employer match. It also could be an automatic withdrawal from your bank account every pay period. Brokerage firms have made it easier than ever to make investing a seamless process for the investor.
3) Have an Indulgence:
After you have met the first two objectives you can move on to this third. Whether it is a nice dinner, a night out with friends or a small purchase, enjoy the fruits of your labor. Of course you should still make sure this indulgence fits into your monthly budget. Still a nice reward.
So there you have it, three things that you should do each time you get paid. These steps allow you to not only take care of your financial future, but also ensure you will enjoy the journey along the way.
Budget Smart, Invest Wise