As you are earning money you are paying everybody else except you.
Look at the following
Taxes:
Govt. is the first to take a cut from your income.Particularly if you are earning salary first the govt deducts their share(taxes) and then pays you.
Bank and Financial Institutions:
Then comes EMI. Most people have loans and before they think about doing something with their income they have to fist pay the banks for House Loan, Car loan etc
Expenses
You have a lot of expenses that you have to take care of. It includes Household, Lifestyle, Dependent expenses.
So these items take a cut of your income and after that if something is remaining then people think about saving or investing for themselves.
So, the question is are you paying yourself first ?
So think about this, what will happen if you pay yourself first ?Which means you look at your savings or investment as an expense item like an EMI.
So when you receive income you allocate first share for your investment and then after that provide for everything else.
Try it and see the difference.
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