Pay Yourself First
Most people try to save what is left over each month, but after paying the bills, there never seems to be anything left. This is why it is so important that the first bill you pay each month is to yourself. If you save a fixed amount each month, or out of each paycheck, you will be amazed at how you still have enough left over to pay your bills. So how do you pay yourself first?
- The easiest way is having your set dollar amount automatically deducted from your paycheck, so you won’t forget or be tempted to spend it elsewhere. Start with a small amount and have it automatically deducted from your paycheck just like your taxes. If your employer can’t do this, have it deducted from your checking account on the same day you get paid (or whichever day you believe is best).
- Once you set a certain amount, put that money in an account that is completely separate from all others. That way, the money won’t be accidentally spent on day-to-day activities, impulse buys, etc.
Paying yourself first provides a financial cushion. In other words, you’re building your savings, which in turn can help when unforeseeable expenses arise. On a happier note, paying yourself means you can save for that much-needed vacation or some other goal you’ve been dreaming about.
In the beginning, it’s not important how much is withdrawn—it’s just important to get started. It’s also imperative that you understand which vehicle is best for holding your savings. Different mediums attend to different needs, so be sure to talk with your personal Money Coach about your particular situation. Together, you can figure out how much money can be set aside while still having enough to meet everyday expenses. You can talk to your Money Coach at 888-724-2326.
Get started! You’ll be surprised with how fast your savings grow!
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