A few weeks back I hosted a webinar on what to do after you are debt free. If you missed it, the replay is now available, but in the webinar I talked about how after you are debt free you can now pay yourself first and not the bank. It’s a really powerful concept that most of us are not used to.
When you have debt, you are pre-committing your future income to the bank first. They must be paid before you pay yourself. We never really question it because that is what we are used to. But instead of us becoming wealthy and having some level of comfort in our finances, we are instead making the banks wealthy. If you need a reminder of this, drive through any major metropolitan area and see what companies have the tallest buildings. Most of the time they are banks.
But when you are debt free you now have more options. You are not bound by these monthly payments anymore and you are now free to do with money whatever you choose to! You can save for emergencies, contribute to your retirement, take that vacation you always wanted, remodel your house, give more, or do whatever else you want to. Your options are now plentiful, but you only have that option if you pay off your monthly obligations to the bank.
If you are recently debt free, it might take awhile to realize this shift in mentality to paying yourself first instead of the bank. But the consequences and rewards of having this freedom are really powerful. If you are still in debt, you gave permission to the banks to be your number one priority when you signed up for the debt. So take away that permission by paying the bank back and realize the power of being able to pay yourself first.
Have you experienced the power the of paying yourself first? If so, what have been the results and what have you been able to experience?