“Pay Yourself First” is a financial principle that emphasizes the importance of prioritizing savings and investments before spending on other expenses. It suggests that setting aside money for savings and investments should be a top priority in order to secure your financial future.

To build wealth effectively, it is crucial to understand and apply the wealth formula, which consists of several key elements:

1. (+) Money: Money is the primary ingredient for building wealth. It can come from various sources such as income, savings, or investments. However, money alone is insufficient to create wealth; it must be combined with other factors.

wealth building one must understand the importance of the relationship between our responsibilities and the amount of wealth we have created. The X-curve concept is a graphical representation that highlights the relationship between wealth/savings and responsibilities throughout our lives.

Building a solid financial house is like constructing a masterpiece; it begins with a strong foundation. Just as no architect starts with the roof, we must first lay the groundwork of priorities to create a lasting structure of prosperity and security.”

Being financially responsible involves putting practical financial wisdom into action. Some of these clichés include curbing spending, paying off debt, and saving early and consistently. Compound interest can work in your favor, but it’s important to understand that the effects of saving may not be as impressive as they once were.

Stages of Financial Life:

1. Fun Stage (20-30s): Graduates enjoying their careers and spending without prioritizing saving or investing.