PAY YOURSELF FIRST, LAST AND ALWAYS

If you've ever read any books on building wealth, chances are good that you've heard the expression, "Pay yourself first."  Great advice.  Part of every dollar you earn should be yours to keep and you should put yourself at the top of the list when it comes to paying out your hard earned cash.  So if you're following this advice, that's great!  But how about getting paid again from every dollar you pay out?  Sound crazy?  Trust me, it isn't.  

I got paid yesterday and deposited my check in the bank.  When I got home, I sat down to pay some bills.  First, I paid myself by scheduling two savings deposits.  Then I scheduled payments for the rest of my monthly bills.  By the time I was finished, there wasn't a lot left of my paycheck.  However, this morning I was going over the annual report from just one of the mutual funds I own shares in and every company I'd written a check to the day before was listed as a stock holding.  This fund pays me a monthly dividend, so every month when I pay my bills I get some of that money back.  As it turns out, I'm now in the enviable position of owning stock, either directly or through fund investments, in every single company I do business with.  So no matter who I'm giving money to, I'm going to get some of it back in the form of dividend payments.  I pay myself first by contributing to my 401k and making savings deposits before paying any bills.  But even when I pay bills or make any type of purchases at all, I'm always paying part of that money back to myself.  

Who do you do business with on a day to day basis?  Chances are awfully good, if you are doing repetitive business with them, others are as well.  Doesn't it just make sense to own stock of the companies you give most of your money to?  If you're going to give them money every month, buy some of their stock or a fund that owns their stock and get some of your money back.