Why Investors Pay Themselves First — And Consumers Don’t

The first thing is a mindset change.

You need to pay yourself first.

Most people save what’s left after spending. Investors do the opposite: they spend what’s left after saving or investing.

Every payday, 60% of my income goes straight to me. Future me.

It’s non-negotiable that before I pay anyone else (energy company, landlord/mortgage bank, taxman, Zara), I pay myself.

Some go into cash ISA savings, and some into a Lifetime ISA (LISA) — a UK government scheme that helps first-time buyers get on the property ladder by adding 25% of what you put in. There is no catch in this scheme. It’s completely free money I never have to return.

Paying myself first fast-tracked me onto the property ladder. I wasn’t just buying a home, I was buying an asset.

Talking of which…

I invest in assets: blogs, property, index funds

Consumers (aka most people) love instant gratification — salary hits the account, and boom, Zara’s profits spike.

Investors, meanwhile, get a bigger thrill from acquiring assets that grow in value or generate passive income later on.

My assets include:

Blogs: Including this one, which generates income through ads, sponsorships, and affiliate marketing. One of my previous blogs sold for £80,000, highlighting the substantial returns possible.

Property: My flat serves dual purposes. Firstly, the rental income keeps me financially stable if I’m away or working elsewhere. Secondly, when I sell my property, it will likely appreciate significantly. UK tax laws mean profits from selling your primary residence (Capital Gains Tax exemption) are entirely yours—so buying at £350K and selling at £450K means £100K tax-free profit.

Index Funds (Pension): I regularly contribute to my Vanguard pension fund, investing in index funds like the S&P 500, which historically return around 8%-10% per year before inflation. Every contribution I make attracts an immediate 20% bonus from the government (40% if you’re a higher-rate taxpayer). If you’re employed, it’s even better because you have three contributors boosting your future wealth: your employer, the government, and you.

Considering the current rental yields in London Zones 1-2 (around 3%-5%), investing in index funds can offer higher returns without the headaches of property maintenance, tenant management, or mortgage repayments.

For those interested in sustainable investments, it is recommended to use tailored portfolio services that help you diversify your holdings across responsible businesses.

Diversification matters—spreading your investments across various asset classes (stocks, bonds, funds) reduces risk and maximizes potential returns.

Final thoughts

If you love financial freedom, you must embrace calculated risks. Delaying gratification today means investing in your future self.

It’s about understanding the financial system and choosing to play it to your advantage.

Don’t spend your life working for others; instead, work for yourself.

By ‘working for yourself,’ I don’t just mean starting a business or freelancing—I mean putting (aka paying) yourself first.