The "PAY YOURSELF FIRST" is probably the most used statement you hear in employee circles and since we are on twitter many accounts are even preaching those words without getting deep into detail.
In simple terms, "Pay yourself first" is a way were you save your money before paying or buying everything else like food, bills, gas and more.
I hate to break it to you, but if you are in a developing country or worse off, a country that is in the middle of an economic crisis and on top of that your only primary income source is your job, its nearly impossible to pay yourself first.
Some are in jobs that give paychecks which have a Gross pay not the same as the Net pay, in most cases it would be 25% less or worse. Not forgetting the tax charges too. The Government is being paid first not you.
So then how do you "Pay Yourself First"?
First thing is to "own yourself".
If your only primary income source is your job
#1 you are paid last.
#2 you are owned by your company.
Therefore in this case you don't "own yourself".
One option i will start with is the least of my recommendations as i would not advise you to make it your first option. Sole proprietorship is the path many entrepreneurs are opting for and choose to stick to that.
Yes its the easiest type of business to establish or take part in, and mostly due to the lack of goverment regulations.
Sole proprietorship has its advantages and disadvantages. Its biggest downer being, its an ill-protected business entity, one bad mistake and you could lose it all.
The Best Business Structures you could opt for are the following:
•Limited liability Corporation(LLC)
C corp - your Assets as the owner or your shareholder's assets and Income are legally separated from that of the Corporation. It survives time and is easily transferred.
S corp - only individuals, specific trusts and estates, or certain tax-exempt organizations can be S corporation shareholders.
Tax advantage=profits not subject to the hefty self-employment tax.
LLC - profit passes through the owners and is reflected on their personal income tax. Profit always passes directly to the owners.
For those planning small startups the best options i would personally recommend you are an LLC or an S corporation.