Pay Yourself First

If the banks and credit companies had their way, all of your hard earned cash would be handed over to them.  This has never been more evident than it has in the recent past.  How is the average person to survive?

Start by wrestling back the control of your own money.  This means confronting the banks, debt collectors, and creditors head on.  It also means paying yourself.

Each payday, take 10% of the net, what you take home, and stash it somewhere.  If you trust a local bank or credit union, start a savings account with it.  Keep in mind, though, if you are behind on taxes or other major debt, the government can freeze any of your accounts at any time.  If you don't feel that the pennies you'll earn with a bank account is worth the risk, stash your cash somewhere safe: 10% of your pay, every payday.  You'll feel more secure having that cash on hand for emergencies.

Start a stack of mail, the bills that are owed, and once a week go through it.  The goal is to pay down your debt as soon as you can.  In the days before direct deposit, our grandparents would bring their checks to the bank and receive cash for it.  One strategy at the time was to have a shoebox full of envelopes, one for each debt, organized by importance. The first envelope was for mortgage or rent, second for food, third for heat, etc.  Each week the cash would be divided among the envelopes, ensuring enough money to pay the bills at the end of the month.  Some weeks the envelopes at the back of the box would get nothing.  Some weeks there was some money left over, which would be saved "for a rainy day", usually under a mattress or in a jar buried in the back yard. 

The banks obviously hate this strategy.  They would prefer direct deposit, so THEY have first dibs on your cash.  Isn't it time you took the control of your money back?