What Percentage Should You Pay Yourself First?

What Percentage Should You Pay Yourself First?


It brings me so much joy that you’re
actually watching this video because paying yourself first, is the most
important financial decision. You will ever make in your life. In this video, I’m
going to share why, what percent you should be sitting aside and then what
you do with it? The pay yourself revolution has arrived.
Somehow you figured out enough about it to Google it or your pit stopping here
on the channel. And we’re going to talk about what percentage of money you
should pay yourself first, p-y-f. And first, what does this even like? Where does this
even come from? Like pay yourself first, what’s this about? You know this
conversation is awesome and for some reason it’s one that almost nobody
follows. Nope. Like we should we should want to pay ourselves. First we should we
should feel that we are of enough worth, of enough value. Do we lesser…community
do we jobs… we don’t even like 87%… Guys pay yourself! Yeah, so right now, people
are in the habit of taking money and we’re doing well with it. I think every
bills, I got to pay you, I got to pay you and then guess what? You get to the end
of the month, you get to the end of the paycheck and what’s left for you? This
much. Nothing. So what do you… you’re a slave. You’re modern-day slave trade. This
is what’s going down. If you don’t pay yourself then guess what? Your money
can’t work for you and if your money can’t work for you, then all you’re going to
do is trade dollars for hours, for the rest of your life, until you die! But
what a rich person does before they ever get rich, is they start
doing the p-y-f. Pay yourself first and that means, that when you start paying
yourself, we’ll talk about how much, you actually tuck yourself in at night. You
tuck your kids in. You go put yourself in for beddy-bye. But you do one last thing
before you sleep, you tell your money to get to work. You say, “take that shovel,
sling it over your shoulder, march! That money is working day and night for you
or you’re working for it. Right now it’s time to get out of the modern-day slave
trade. It’s called having a j-o-b it’s just over broke. And bottom line, spending your
time and your life doing something that you may not even like and you’re not
even getting anything to show, except for a basic behind the 8-ball lifestyle. As
paying yourself first is, how you get ahead. So if you’ve been going for 5
years, 10 years, 15-20 years and you’re still not getting ahead, I will tell you,
if you will follow this one principle, you will start today to get ahead. To
start moving forward in life and actually set yourself up for real
financial freedom. This is what the billionaire’s teaches, this is what the
millionaires teach, this is what everyone who has gotten ahead in their life is,
doing in a very powerful way. So here’s what you got understand. Money is a game.
Making money is a game. And because money it’s a game, there are
rules. Can you imagine trying to play the game of chess, but not understanding the
difference between a pawn and rook? It’s like you’re cheating dude, why are you
moving up three and over to… Like what are you doing? That makes no sense right?
That’s crazy. But the reality is that making money is easy when you understand
the rules. And if your check to check are thousands of dollars in debt, what we’re
going to do is we’re going to tell you that this one principle , this is what one of
my mentors Tony Robbins, calls the most important financial decision of your
life, is knowing what percent, you’re going to pay
yourself? And we’re going to give you three recommendations. So real quick, before we
get into recommendations, understand that if you’ve never paid yourself before, it
can seem like it’s going to hurt, right? I mean if your paycheck to paycheck and at
the end of the month, you don’t only not have enough but you’re in the
hole, then this idea of paying yourself first… Ah there’s no money to pay my self… It’s
almost impossible. And you’ll probably even tell yourself, “this is
impossible.” No. This is part of where the mindset
comes in, because as you begin to pay yourself first, it actually does
something to your mind. You begin to feel this interesting sense of freedom
already, because now although you have other bills to pay,
you’ve already started create a buffer. You started create a cushion. You
started create monies that you can use to invest in wise or purposes, than what
you’ve already been using it for in the past. Well and you got to learn how to
become the producer instead of the consumer. Listen the consumer they’re
buying the gadgets, they’re checking out on Netflix, they’re doing all the things
to basically distract themselves from living life. Probably because you get the job that
you don’t like or you’re not willing to sacrifice or pay the price because you
don’t it’s too hard or you just don’t like it. So we got to find a way to
distract ourselves. But it producer, all they get excited they say, “I’m going to pay
myself first, so I can put my money to work because it’ll start in really small
amounts but it’s going to snowball.” You know what a snowball does when it gets
rolling down the mountain. It gets bigger and bigger and bigger until one
day, its crazy. Billionaires and millionaires you know how they’re all
created. This, they’ll all say the exact same way. It wasn’t luck. If they still
got the money, wasn’t luck. They got it because they hearken to the principle.
This comes from a book richest man in Babylon. Great book by the way, it’s a
classic, it’s kind of written in biblical times. Language it’s very very short and
one of the principles that it teaches about money is that, you’ve got to pay
yourself first. Now the book will say you should pay yourself 10%.
And I know some of you’re like, “I can’t do that.” And I know some of you are like,
“cakewalk.” I want to put you into what a three different buckets right now because I
love you. The first bar bucket is called check to check or behind the 8-ball. If
that’s your situation, I want you to save 3-5 % of your income. Now
I get it, you’re thinking ain’t going to happen. Stretch. Listen to me,
if you pay yourself first, I swear, the rest will work out one way
or another. If you’re doing okay financially because Parkins law says
that we make plus or minus 10% of what we make. That’s why it doesn’t matter
whether you make 30 grand a year or $300,000, you’re a three million a year,
unless you are actually living this principle. There’s just a really good
chance – you’re spending everything you’re making. Yeah. So if you’re
kind of doing average, I want you to save 10% just like richest man in
Babylon says. But I want you to work up to a magic number called, 20%.
Why 20%? Because that snowball gets going where you can take decades
and you can turn it into yours. The whole reason why someone porn behind the
8-ball can get where they want to go, with a little bit of time, is because of
a magical financial device that exists in our day and age called compound
interest. And if you understand this is the most powerful, Einstein called this
the most powerful financial innovation that’s ever existed. Because compound
interest, I want to go to David Bach for a moment, right? He wrote this book called
Start Late Finish Rich. And in his book, he created something called the
latte factor. And the latte factor says, “okay, latte is five bucks, you get in the
habit of having a latte a day. What would happen if you could cancel that pattern,
save save five bucks a day? Well, five dollars a day, that’s going to end up
being how much a month? $150 that’s not a whole lot of
money, but guess how much that has grown to in ten years. At compounding interest
of 10 percent. Right? Stephen and I, real estate our whole channel here, we show
you how to make 10% compound interest. What happens ten years from now,
is that $150 a month has turned into three hundred
grand. Twenty years from now, it’s turned into
nearly a million dollars. Fifty years from now, it’s turned into $25,000,000.
Like even if you were just putting a latte down, not for your
life but for your grand kids, are you kidding? What you could hand off to them?
Small things become massive. Now the reality is that, when you have a lot more
money, it’s going to snow more faster. You do
real-estate deal. You join our real wealth team and we send you a $4,000 or
$10,000 thank you check. Guess what happens to pay your PSLV. We’re talking
about in short periods of time, the massive, massive amounts of wealth. But
real investing or real estate in the things that we talk about, it really
comes down to – whether you got the discipline to pay yourself first. And
some of us aren’t going to do it until we have a big enough one Stephen. A big
enough why? Now this is something that people have talked about for years and
years and years and actually one of my good friends always says if your why
isn’t big enough, if it’s not strong enough and powerful enough to make you
cry, it’s not big enough. In other words if it doesn’t hit deep enough, then it’s
not going to keep you in that space of discomfort long enough, to be able to see
the success. And a lot of people will say, “why does my why need to be emotional?”
I’ll tell you why, your “why” has to be bigger than any opposition you’re going to
face. How big does your ‘why’ need to be?Big enough, to beat out any opposition. Because by
the way, if you don’t have a big enough “why” and bigger opposition comes, guess what
it’ll do to your why? Kersplat. And then guess what happens? You’ll break, you’ll
fall down, you’ll classify it as failure. You’ll create a limiting belief. And all
of a sudden the things that you wanted to do and create become in your life,
they’re all gone because you said, “well I’m a pretty strong human being, until I
face enough adversary opposition that I can’t overcome it.” Having a
big enough drive, like what is it that really drives you? And here’s a clue
question for you to ask yourself, whose people’s pain do you feel the most? For
me, we talked about the sex slave trade. And the fact that little girls are
stolen from their homes and are chained to beds, put on drugs and they’re asked
to basically witness horrific evil. That for me, that’s a pain
that I feel so keenly that I’ve got massive financial goals to make money. In
the coming years, I’m working towards an endowment fund of a $100,000,000 so every year there’s $10,000,000 that can go to that and
other causes that absolutely move me, right? Now the beautiful thing is, I have
the ability to do something to help today like through an organization
called Underground Railroad and it might be smaller today than what it’s going to
be in the future, but I’m taking action on it and it
moves me. What gets visceral for you? Whose pain do you feel? Because if you
have the ability to solve those problems in this world, you might have just found
a why. Big enough, to pay yourself the amount of money that you need to solve
the solutions for the tiny day-to-day stuff. Figure out how to save some money
here and ultimately by paying yourself first, in time will allow you to do
anything that you want. Can I ask you a question, you got to respond out loud.
What percentage at this particular point your life, are you going to be setting
aside? Well done good job. Let me ask you in the future when things are doing
financially better, what percentage then are you going to be
setting aside? Oh my gosh, you’re amazing! Way to go! Friends, that is the beginning
of the end. That’s the beginning of getting really where you want to go. If
you want to learn a lot more about that, come over to my website. Look at some of
my different events, ways that we can play. Some of the ways that we can start
rocking out in real estate and expose you to a world of investments that
ultimately will help you fulfill your life’s purpose, your dreams and bring you
the fulfillment, they’re all searching for.

35 Comments

  1. Olaf Hamelink says:

    Thx for the vid, btw your intro never gets old I love it

  2. Zachary mcsweenmanickchand says:

    Did you just read the richest man in Babylon?

  3. Thor Rohbock says:

    I want your time and Im doing my best to be the best Im opening a online store and havee watchde and read hundreds of hours about business and I know where im going and how im gettting their I have an idea that could make billions and yes im crazy please contatct me.

  4. Jose Aguirre says:

    I pay myself the percentage that the government takes lol

  5. Walter Mercado says:

    100%

  6. Hester boy Games says:

    i earn $400 a week before taxes and insurance so i only bring home $300 if im lucky i dont know what i should do 🤔

  7. StrijderReviews says:

    You have tips for investing in Europe also?

  8. Rob Kwisi says:

    Love your advice.
    I'm gonna start saving 15% now on.
    I'll test it after 2years and see the results.

  9. James Sumaljag says:

    Thankyou Sir! God bless you!

  10. Joshua Galup says:

    My fav channel of all time! Please can you guys answer personal questions about real estate?

  11. sleevenick says:

    I have a question. How long should i pay my self 3-5% before i upgrade to 10 or 20%?

  12. Gabriel Leyba says:

    What’s the intro song ?

  13. Stuart Johnson says:

    Currently putting aside 21% in 401k. Hopefully more after I get my real estate license

  14. LANCE KAMINSKY says:

    150 a month for 10 years at 10% interest is $30726, nowhere close to $300000! Maybe he forgot a digit?

  15. Matt Schmitz says:

    Love it

  16. Byrant Taylor says:

    Pay urself to invest I thought to take to go out

  17. Krista says:

    The best money game is Adventure Capitalist lol! You guys at Limiless TV would probably like that game.

  18. Krista says:

    At the end I answered those questions 10% and then 25% without thinking hahaha yeesh! Guess I'm a saver!

  19. Tyler Durden says:

    The coke sniffs are a bit much in this one lol

  20. The Matrix says:

    So once I pay myself first where do I invest the money to accumulate the compound interest?

  21. Mr. MechX says:

    I will pay myself 40% and set aside 15% for self improvement things like books & courses

  22. thomas oliver says:

    Did anyone else notice that huge bottle of Invictus fragrance

  23. Graham Langley says:

    I do %20 and anything extra that comes along on top. works a treat.

  24. navada gordon says:

    What do I do with that money that I pay myself?

  25. navada gordon says:

    How do I join your real wealth team?

  26. Progress Kid says:

    I pay my self 40 % 20 % of that goes to investments

  27. Tenzin kunsang says:

    My bank account is 0

  28. Tom Hood says:

    How do I connect and ask questions about your real estate wealth program?

  29. Ben Burroughs says:

    Hey I bought your book “limitless” a few weeks ago but haven’t receive yet. Can’t seem to find an email or number to let anyone know. Is YouTube comment the only way

  30. Jumbo Palumbo says:

    "Pay yourself first??? HAHAHAHAHA" – The IRS
    The IRS cares NOTHING about your financial goals or desires. PAY THEM FIRST. 30% off the top of every penny that goes through my shop goes in to a short term CDs for the quarterly IRS (state city, county,federal) shakedown. Then I divy up the rest. It is rare I have a 30% tax liability but if you skip paying them. You're screwed. Big time.

  31. le zoom says:

    This PYF method, is this including pre-tax 401k deductions or in addition to it? 🤔🤔

  32. johto says:

    I pay my self around 30-40% from my take home pay. From that, i allocate around 80% to investing and 20% to pay my only debt i have (low interest student loan). Makes no sense to pay it all first currently because the student loan interest is so low (around 2%). I have avarage salary and have kept my standard of living quite simple.

  33. Plagius8 says:

    Why did me and Steven say PREACH IT at the same time👌

  34. Sah. B. says:

    What is the percentage!!!

  35. Sah. B. says:

    4:50.

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