I’ve finally gotten a chance to read the famous “Rich Dad Poor Dad” by Robert Kiyosaki (well I was listening to the audiobook, free trial from audible.com), though I haven’t finish, there was a lesson from Kiyosaki that left an impression on me, his emphasis on “paying yourself first, before your other creditors.” The whole idea is to make sure your paycheck benefits you first, not to your mortgage payments, electric bill or even taxes, so that when those payments are due, you find ways to pay them off. Of course, Kiyosaki isn’t trying to persuade you to not pay your debt, but instead you should let those payment dues become your motivation to look for more ways to earn money to pay them.
I recently realize that I unconsciously put this into action. As you may know, part of my 2013 Financial Resolutions is to keep to my budget. But my recent shopaholic habits have pushed my shopping expenses over the budget line. So I started thinking of ways to make up for the extra spending. Easiest way was through cashback from BigCrumbs and Ebates, helping from 2-10% (good enough for taxes at least). I also looked thru my possessions and am trying to eBay off some things that I either can’t return or seems too valuable to donate/recycle/trash. In essence, I paid myself first and now am finding ways to pay my debt (in this case, keeping to my budget).
Theory remains theory, the idea seems very risky to me. How many of you dare to put your paycheck elsewhere before paying your mortgage? But I do agree that working under pressure improves productivity. I’m sure you’ve at least heard someone mention before “that they work better under pressure.” I know I’ve said it. There’s been countless times that procrastination forces me to pull together projects & papers overnight. But how much would I try to push myself by “paying myself” first before bills? I can’t say, maybe in small scales like my budget.
What do you think? Have financial pressure gotten you out of the “rat race”?