Believe it or not, the first person you should pay from every paycheck is yourself. This is true even if you are self-employed. Surprised? To reach many of the goals you have set for yourself, you’ll need money. If you want to take a nice vacation, buy a house, or enjoy a fairly comfortable retirement, you’ll need to save.
Of course, this rule only applies if your income exceeds your expenses each month and leaves you some money to save. This may not be possible right now, but it should be one of your most important, immediate goals. As soon as your income exceeds your expenses, you should begin putting some of the extra income into a separate, interest-bearing savings account designed for emergencies. Once you have saved an amount equal to 3-6 months of your take-home (net) income, you should start investing extra income in an investment account that has the potential to grow more rapidly than savings
Advice by: By Drew Kessler