As a teen and a young adult, I always heard people say, 'pay yourself first.' I thought, this is ridiculous -- if I could 'pay myself,' then I would not need a job. What these teachers, coaches and mentors were trying to convey to me was to set money aside in savings. This is a hard concept for a young person, particularly when one is just entering the workforce and it seems like every dollar is needed to pay a bill or an existing debt. Yet, this little bit of savings set aside early in life can pay big dividends over the long run and can provide the needed funds to handle an emergency so that one does not need to take out credit to pay an unexpected bill. Many of you learn about 'compound interest' when you are working on Personal Management Merit Badge. This is a concept where one's money in savings makes money called interest, and that interest added to the base amount makes more interest. This same concept works for debt; when one borrows money, the lender charges interest, and if one does not pay that off fast enough, the amount of debt grows as more interest is added. As Albert Einstein said, "Compound interest is the Eighth Wonder of the World. He who understands it, earns it. He who doesn't, pays it." i encourage you to live within your means, and take joy and diligence in 'paying yourself' so you have a safety net of cash.
A Scout is Thrifty