Remember way back to your first paycheck. The moment you open the envelope anticipating the windfall when all your hard work pays off. Then, like a swift kick to your gut, realty hits. Your takeaway earnings are almost always way lower than what you expected.
Once the shock and horror of taxes goes away, money management comes into play. Most of the time these days, paychecks are spent before the money hits your account. If only at the moment of your first paycheck you had implemented the ‘holy grail’ of personal finance, pay yourself first.
According to a recent article from Forbes, “only 23% of Americans have enough emergency savings to cover six months of expenses (the amount many advisers recommend for financial security should something unforeseen happen)—and 26% have no emergency savings at all.1”