“Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family”
(The Richest Man in Babylon by George S Clason).
This simple law of self -empowerment has never changed, it has been the same throughout the ages. Yet we see business after business fail and entrepreneurs burnt out having lost it all as a result of not following this simple law – Pay Yourself First.
By not following this law for many years during the rapid growth of my last business – I ended up losing almost everything. I ended up in debt and losing personal possessions and nearly lost my husband due to stress.
I consider myself an intelligent person, a natural entrepreneur yet I fell into the habit of pouring absolutely everything into the business which became a bottomless pit – I defied a natural law, a law of self-preservation – why?
My theory – I was not inspired by what I was doing. I thought I was, it was congruent with all my values in that is was pioneering, it was exciting, it involved enormous amounts of learning and was completely different to anything I had done before – yet I was not inspired.
By not being inspired I didn’t value myself and the only way I could demonstrate physically that I did not value myself was not to pay myself first!
Which ultimately brought about the collapse of the business – was this a strategy?
Is this a strategy we use when we as entrepreneurs establish businesses that we ‘thought’ were inspiring to us only to find it was not and we sink everything we have into it and ‘see’ no way out?
So the strategy is to sub consciously put in action a series of events – one of them being not paying yourself first – in order to bring about the inevitable collapse of the business to free us?
It feels that way for me. If you are an entrepreneur and you are NOT paying yourself first I ask you to reflect on why you are not doing so – why do you not feel worthy of payment? Why are not inspired about what you are doing?
The sooner we realize this the sooner we can take action and avoid the inevitable collapse and investigate ways of transitioning what we are doing into something we love to do.
The collapse of my business was spectacular and I have learned so much from it and I am today grateful for the experience – so even if the inevitable happens as a result of not paying ourselves first there are blessings but life is so much easier if there is cash in the piggy bank.
I am enormously fortunate today to have a mentor and coach Greg ‘Lucralover’ Etherton who is mentoring me in my latest venture and has gifted me with his book ‘Pay Yourself First – Become Rich with Time and Money’ and I would love to share with you a very valuable piece of advice in the book, because if you are like me after experiencing not paying yourself first, you may go the other extreme and try and save MORE than 10% –
‘The first 10% is sacred – pay yourself exactly 10% of your gross income, not more and certainly not a cent less. Now there will be those of you who are gung ho, starting late in life, or just would like to save more to retire earlier. No Problem, save the 10%. Then save in a separate account or vehicle the “extra” money you would like to put aside.
Make sure you always separate your 10% do-not-touch fund from the rest”
Phenomenal words of advice from a very wise man.
An absolute MUST READ for every entrepreneur – Think and Grow Rich by Napoleon Hill