"Pay Yourself First" Was My Foundation for Wealth Building

Often people save only if there is money left over after expenses and discretionary spending.  This is how I started when I started working.   Here is the spending priority:

1. Necessary expenses - Rent, Utilities, Groceries, Gas, Car Payment
2. Discretionary expenses - Entertainment, Eating out, Vacation
3. Savings - Retirement accounts, Bank Accounts, Investments

Putting Savings first helped me build wealth faster, and building wealth was my top financial priority.  Here's the priority, I switched to later:

1. Savings - Retirement accounts, Bank Accounts, Investments
2. Necessary expenses - Rent, Utilities, Groceries, Gas, Car Payment
3. Discretionary expenses - Entertainment, Eating out, Vacation

After a few years, I began putting my annual raises primarily towards savings.  What I found is the first 10 years of accumulation seem to be very slow growing.   It wasn't until after 20 years, significant growth was evident on a yearly basis.

I have tried to instill "pay yourself first" mentality with my kids.

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This is not financial, wealth building nor saving advice. Please consult a professional advisor.

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