It struck me the other day that my esoteric (look it up) ramblings about money, earnings, debt, and budgets were falling on deaf ears. Yawn!
But then the other day one of you Grasshoppers made reference to people viewing themselves as "money machines". Huh? Yeah, each person works hard every day to earn cash and you get paid every week, every two weeks or monthly. That cash you get makes you a money machine. You have cash to spend on what ever you want. After all, you earned it.
No one has any idea of how long the money machine will spit out hundred dollar bills but hey, for right now, keep it coming. So you take your cash and pay mortgages (or rent), car payments, boat payments (boat payments?), utilities, medical bills and kids shoes. Suddenly your cash machine is being stressed. There is no more cash until the next payday. What if it breaks down? What if there isn't enought?
I've touched on budgeting and planning subjects in the past and you can go back and re-read some of the entries. My message for today is that you own your own money machine. Hell, you are the money machine. If follows that as the money comes out, YOU SHOULD PAY YOURSELF FIRST.
Pay yourself first takes many forms including contributions to your retirement accounts such as 401ks and pension plans. Actually, the dedections from you checks for Social Security are going into the government abyss that hopefully will provide future income. A regular deposit to a savings account is paying yourself first.
When I say pay yourself first, I mean put cash in your pocket every payday. You are your own cash machine. Who is most entitled to the cash. YOU ARE! I know it is a simplistic concept but you can budget cash payments to yourself. The cash can be used for anything you choose. You don't have to explain it's purpose to anyone. If you want a Starbucks latte with whipped cream, live it up. If you want that copy of "Cosmopolitan", go for it. If you want to take your loved one out to a movie (afternoon prices are reduced), have a ball. If you want to get "smashed" at the local bar, it is your choice. When it is gone, it is gone and you have to wait until the money machine kicks out more cash next week.
Your mother and I have both been paid cash on EVERY payday. Reality is that sometimes it gets spent on necessities like golf balls, outboard motor oil and camera lens. But, just having the discretionary cash is a good feeling. It represents a tangible, visual positive outcome of all the long hours spent earning the cash. In Milwaukee in the 60's, your mom and I got $5 per week. Hers went to bowling and mine went to golf. To be fair, $5 in the 60's is probably like $25 per week now. We have increased the amounts slightly over the years but we do indulge ourselves with "piddling away money". I used to call it F.U. (i.e fun use) money. It is mine. I can do what I want with it. I don't have to explain it use to anyone.
If looking at yourself as a "money machine" brings perspective to managing your money, go for it. Regardless of how you manage your money, you can find cash to PAY YOURSELF FIRST.
Love,
Dad
My parents always instilled the pay yourself first rule and it is very true...I've worked for two weeks hard and dealt with the infinite office problems, I'm entitled!
Excellent post.
My favorite part of this post was when you called a camera lens one of life's necessities. *sniff* My heart did a little leap of happiness!