Pfersching dismantles the conventional "Income - Expenses = Savings" budgeting model, replacing it with the transformative "Pay Yourself First" principle where investment contributions become the first bill paid each month. The chapter establishes a three-step framework: fortifying defenses through emergency fund creation (3-6 months expenses) and high-interest debt elimination, calculating sustainable investment rates (typically 10-20% of after-tax income) through rigorous cash flow tracking across fixed, variable, and discretionary categories, and automating transfers to remove willpower from the equation. Pfersching introduces the concept of "negative carry"—high-interest debt that actively undermines portfolio gains—arguing that eliminating a 20% APR credit card delivers better returns than any market investment. The automation imperative transforms investment from an aspirational afterthought into a self-executing system, ensuring consistent capital flow regardless of motivation or market conditions.InvestmentBudgetingCashFlowManagement

New tracks tagged #AutomatedInvesting