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- 💸 ⚙️ Pay Yourself First.
Welcome back to Hugo’s Habits!
This week’s habit will be focusing on WEALTH.
P.S. Take some time this fine morning to check out the best links section! Some amazing content in there! 👇️
In today’s issue:
What is the concept of "paying yourself first”?
Easy guide to implement this strategy.
Tools and resources to make this strategy as easy as possible.
and more…
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(Estimated read time: 2 minutes)
Best Links This Week ⚡️
I always try to adopt new habits and learn as much as possible.
Here are the best articles and information I found this week.👇️
🧠 😁 Boosting Happiness
Positive Psychology Strategies for Increased Happiness (link)
5 Ways To Increase Your Happiness, According to Science (link)
How to Be Happy: 27 Habits to Add to Your Routine (link)
💪👨⚕️ Health Hacks
9 ways to get healthier in 2024 without trying very hard (link)
The little things that can improve your health (link)
Five ways Michael Mosley made us healthier (link)
🤑📈 Wealth-Building Tips
10 TIPS FOR MONEY MANAGEMENT & BUILDING PERSONAL WEALTH (link)
Dave Ramsey’s 10 Best Tips for Building Wealth: ‘Start Thinking Like Rich People’ (link)
How to Build Wealth When You Don’t Come from Money (link)
Pay Yourself First: A Simple Strategy for Financial Success
🤷♂️ What Does "Pay Yourself First" Mean?
"Pay Yourself First" is a straightforward concept: prioritize saving and investing a portion of your income before spending anything else.
Instead of treating savings as an afterthought, this approach ensures that your financial future comes first.
In turn, we are setting the foundation for long-term wealth and security.
I first learned of and implemented the idea from the video below.
It goes into incredible detail, whilst remaining easy to follow:
📓 How to Implement the Strategy: Simple Game Plan
Normally when you hear STRATEGY you automatically think, nope too complicated.
Sometimes I switch to the “money doesn’t matter”, or the “you only live once”, or sometimes the “experiences » money” attitude.
The fact of the matter is that money = freedom.
And the sooner you can get financially comfortable the better.
So here is a simple strategy that will allow you to become financially comfortable, if you have patience.
If you're not patient, I recommend you start crypto or forex trading so you can “get rich quick!”
(Hint: These are all complete bullshit.)
🤷♂️
🎯 Step 1: Set Clear Goals
Define what you’re saving for—retirement, an emergency fund, or a big purchase.
Align your savings with these goals to stay motivated.
⚙️ Step 2: Automate Your Savings
Set up automatic transfers from your checking account to a savings or investment account each payday.
This ensures you save before you even think about spending.
These automatic transfers can be set up in your banking apps through direct debits, or automatic transfers to savings account.
My way of saving and investing is using an autosaving app, such as Moneybox.
These apps work by rounding up your everyday spending to the nearest pound and saving/investing the rest.
Say I spend £12.20 in the shop, the app will round it up to £13 and automatically save the 80p.
On average, Moneybox found that their customers saved around £12.37 per week from these round-ups.
This may not sound like a lot, but these round-up savings in conjunction with monthly deposits can make a ridiculous difference in the long term.
Go to a compound interest calculator and check the difference between investing £140 a month for 20 years and £100 a month for 20 years.
(Click below 👇️ )
(Hint, it’s quite insane.)
🫣 Step 3: Out of Sight, Out of Mind.
Step 3 is the easiest and hardest of the steps.
Do. Not. Look. At. Your. Account.
Be patient and try to look at your savings/investment account as little as possible.
This only leads to urges for withdrawal and discouragement.
Trust me. (Click below 👇️ )
📚️ Step 4: Financially Educate Yourself
Anyone reading this who does not invest in an index fund every month, please read this article. (Click below 👇️ )
This past article is into what are index funds, how they are used for savings, and how they are the most powerful wealth-building tool ever created.
The best time to start investing was 20 years ago.
The second best time is right now.
I began financially educating myself when I was 18 during the pandemic and have continued to do so ever since.
I have read every finance book on Amazon’s Top 20 List.
(The only book I do recommend for everyone is “The Psychology of Money” by Morgan Housel. It’s amazing.)
YouTube is still clear. Far and away.
For this education, I massively recommend Damien Talks Money channel.
He is UK-based and covers absolutely everything you need to know in an easily digestible way.
That’s all for this week!
Any questions?
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I love responding to our readers!
See you next week,
Hugo.
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