Pay Yourself First

So I wanted to start this blog with one undeniable truth. . . The Arizona Cardinals are going to win the Super Bowl this year.

Anyways. . .

Here at Rich Dad I often get A LOT of questions about Robert, or what did he mean when he said. . . , so on and so forth. So I thought I’d tell you about the number one question that I get.

“Hello Jack what does it mean when Robert says, ‘Pay yourself first’?”
I hated getting that question. I had no clue.

I figured it showed that Robert had forgotten what it was like to be an average Joe. That Robert could no longer remember the days when his shirts were ripped, when he drove around in a rust covered convertible Karmann Ghia with moth holes in the cloth top. When he couldn’t get a date because he couldn’t afford toothpaste or deodorant. Or, dare I say it, when he had to fly commercial coach class (oh the horror).

So the other day I decided I would ask Robert. Sure this sounds easy. I want you all to imagine going to your boss and saying, “hey boss, I know I’ve been working for you for a while, but I don’t understand on of the foundational truths we present in our company.”
It makes you feel a bit stupid and like a total Jack A$#. Its like going to your wife of 10 years and saying, “I understand monogamy is an important part of our marriage, but I don’t really get it”.

But, I’m tired of not understanding and I’m tired of being to afraid to ask Robert what that means. So I ask.

Robert turns around and TOTALLY starts screaming at me. He’s spitting as he goes into his temper tantrum about how stupid I am and what a loser and why am I even bother to work here if I’m so unteachable. . .

I’m kidding.

Robert just turns to me and says, “Did you read Financial IQ? (his latest book)”.

God. I wanted to lie SO bad. I needed to lie SO bad. But I said, no. I hadn’t gotten around to it yet.

That does set him off. “You stupid A hole, if my own people don’t want to learn, what hope is there for the rest of the world?!” Then he hauls off and hits me!

I’m Kidding.

Robert says that I really should read it, because I could learn a lot from it. But then he gives me the answer to the question.

“What I mean when I say pay yourself first is. . .pay yourself first. That’s it.”

Then he looks at me. I’m afraid to ask the next question. Especially since I already told him I didn’t read his latest book. But I’m in this deep, so I say, “I don’t get it. I’ve got bills. Shouldn’t they be first? How can I not pay my bills?”

He looks at me. Now he looks tired. I’m trying to maintain eye contact through my shame, but the gravity of the floor keeps trying to pull my head down.

Finally he says, “Look Jack, it’s simple. Pay yourself first, NOT your bills. Then, when the bill collectors start screaming at you, you’ll find the money. You’ll find a way”

This makes sense. When my business started going under, I always found money for my loudest bill collectors. The rest I pleaded and begged with to get better terms. Its painful, but it is true. I guess by paying yourself first you create a motivator for you to get your finances straight and better terms. In the meantime, hopefully you find a way to take your savings and create cash flow. I suppose the desperate situation you place yourself in will also help you keep your eyes open for opportunities.

So if you’ve heard Robert say, “Pay yourself first”, but never understood, hopefully you do now. Courtesy of my shame.

Jack B. Shameful