Hello, everyone! I’m Amanda, a neurodivergent BCBA, and today, I want to share my personal reflections on a phrase that confused me as a child: “pay yourself first.” Growing up, I misunderstood its meaning, thinking it referred to indulging in immediate desires. Over time, I came to realize that it entails prioritizing the financial needs of our future selves. In this blog post, I will explore the challenges neurodivergent individuals face when interpreting phrases without context and explain the true meaning of “paying yourself first.” Additionally, I will discuss why it is crucial not to rely solely on government assistance programs as we age.
The Struggle of Context and Phrases
This is quite embarrassing as I was much older than I care to admit when I learned the true meaning of this phase. As neurodivergent individuals, the ability to understand idioms and figurative language can be challenging. We often take things quite literally, which can lead to misconceptions and misunderstandings. Growing up, I found it difficult to grasp the intended meaning of certain phrases without proper context or explicit explanations. Unfortunately, this can have a profound impact on financial literacy and planning for our future.
Understanding “Paying Yourself First”
Contrary to my childhood misconception, “paying yourself first” does not refer to indulging in immediate wants and desires. Instead, it urges us to prioritize saving and investing for our future financial security. When we “pay ourselves” first, we set aside a portion of our income, whether through savings, retirement accounts, or investments, before meeting our other financial obligations.
The Importance of “Paying Yourself First”
- Building Financial Security: By prioritizing saving and investing, we fortify our financial foundation. This approach allows us to accumulate wealth over time, providing security during unforeseen circumstances such as job loss or unexpected expenses.
- Compound Interest and Growth: When we invest in retirement accounts or other investment vehicles, our money has the opportunity to grow exponentially over time due to compound interest. This compounding effect multiplies our savings and helps us achieve long-term financial goals.
- Reducing Reliance on Government Assistance: Relying solely on government assistance programs as we age may not guarantee the quality of life we desire. By consistently “paying ourselves first,” we take proactive steps to ensure we have sufficient resources to supplement any unforeseen gaps in these programs.
Cultivating Good Financial Habits
- Budgeting and Prioritizing Savings: Create a budget that includes a designated portion for savings and investments. Treat it as an expense rather than an afterthought. Automate transfers to ensure consistency and ease.
- Minimizing Debt and Expenses: Managing debt and minimizing unnecessary expenses frees up resources to allocate toward savings and investments. Review your spending habits and identify areas where you can make adjustments to save more.
- Seeking Financial Education: Invest time in educating yourself about personal finance and retirement planning. Books, workshops, podcasts, and online resources can provide valuable knowledge to support confident and informed decision-making.
Understanding phrases without context can be challenging for neurodivergent individuals, and I personally experienced this struggle regarding the phrase “pay yourself first.” By recognizing that it isn’t just about immediate gratification but instead focuses on prioritizing our future financial security, we can take deliberate steps to strengthen our financial standing. By “paying ourselves first,” we reduce reliance on government assistance programs as we age and work towards financial independence. Let’s embrace the importance of long-term financial planning, cultivate good financial habits, and empower ourselves to build a secure future. Together, we can navigate the complexities of personal finance and thrive.