Money TIP 2: Pay yourself first!

Have you noticed that you live paycheque to paycheque without saving anything up? Chances are, you will spend 90-95% of your current paycheque anyway before your next paycheque without having anything saved up!

Before we continue, I would like to make it clear that I am not contradicting my first article on this blog by saying that you should pay your debt first. It is still imperative that you get yourself out of high-interest debt before you embark on the journey to building wealth.

You are your own employee, so give yourself a paycheque!

This doesn't mean that you will have to spend it all on signature clothes or an expensive dinner out. You should pay yourself for hard work, and tuck the money away in a "rainy day" fund or "retirement" fund that you could easily access in the event that you are out of work either by chance or choice.

A good rule of thumb is to have 10% of your paycheque tucked away before you have a chance to spend it. Have your employer automatically deduct a small amount from your paycheque and put it into a Registered Retirement Savings Plan or another bank that is a little bit harder to access.

If you get paid bi-weekly like the author and have even just $100 deducted every paycheque, you would have saved $2,600 in a year without even feeling it. In addition, if you put into a tax-sheltered investment vehicle, you would save even more in taxes!

Write yourself a cheque

If you like the feeling of holding a cheque in your hands with your name on it, here's a way to experience that satisfaction. Write a cheque from your payroll chequing account into another savings account in a different bank. This is especially helpful if you can't easily access the other bank where you hold your savings account. If you get statements mailed to you, after a while you will be pleasantly surprised with the nice sum of money you have accumulated.

Keep yourself happy and healthy

As with any other business, you need to keep your sole employee happy. Give yourself a nice treat every once in a while (make sure that it is still within your means) and keep yourself healthy.

Quit or reduce your smoking and/or drinking [alcohol]. It will save a good chunk of money as well as improving your overall health.

The bottom line of this section is plain and simple, health is wealth too. After all, a sick employee can't be productive. To keep yourself profitable, stay healthy, and it won't be long before you are wealthy too.