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Pay yourself first

When I was 16 I went to see a financial advisor for the first time. He was a friend of my dad's and I only agreed to go to stop Dad from nagging me. Looking back now, I can see that he gave me the best piece of financial advice I have ever heard.

It was very simple – “pay yourself first”. He instructed me to set up an automatic transfer each week when my pay was deposited that went straight into my savings account. And I couldn’t touch this money. I started doing this from my next pay and began my now lifelong habit of saving.

I started this when I was 16, working my first job at McDonald's, earning about $100 a week. I actually used my Children’s LLL Account! (Yes, I’m a past Lutheran school student!!) I think I saved maybe 10%, so around $10 each week. However over the years, my savings built up, and they helped me and my partner to buy our first house when we were 22.

Now as a mother of 2 young children, with a bigger mortgage, and many more expenses, my husband and I still “pay ourselves first”. Yes, it decreases our weekly disposable income, meaning we have less to spend on new clothes and café lunches, but the benefit is we have a little fund that we can use for family holidays or emergencies.

At the LLL we are determined to help you teach your kids to save. We want to assist parents to teach their kids the importance of money. We want your kids to learn to save before they learn to spend. Opening an LLL account for your child, and encouraging them to save regularly, really can help them learn good savings habits for life.

To open an account, please fill out one of these forms, or call 1800 556 457 for more information.

 

Editor’s footnote: Of course, as Christians, we are encouraged in the Bible to practise ‘first fruits giving’. This means first putting aside money so that we can give generously to God, from what He has given to us.

 

Terms and conditions apply. This information is not intended to constitute financial product advice. You should obtain and read the LLL Disclosure Documents and the LLL@Home Terms & Conditions (available in branch or on the LLL website) before making a decision to deposit funds with the LLL. 

 

View similar posts categorised as: Financial Literacy Home page LLL News March 2018