Pay yourself first.
In 2010, Cornerstone launched the Cornerstone Financial Credit Union Scholarship Program in which applicants were asked to write about the importance of financial education as they enter college. One winner, Faith Marshall, told about those three wonderful words her grandfather told her. No, it’s not those three words, it’s these: “pay yourself first”. This does not mean go blow your paycheck on yourself first. Grandpa Marshall meant to put away a portion of your pay every payday in some sort of savings vehicle before you spend any of it on anything else.
Faith puts away 10% each payday, but the number is not as important as the practice. If you haven’t adopted this habit, start now and start small. It’s not painful, and watching your savings balance grow is very rewarding. This is truly the meaning of paying yourself first.
As Faith demonstrated in her essay, not only was her grandfather a saver, but so is her father, and it trickled down to Faith, too. What a meaningful legacy. Don’t you want to pass it on?