“Pay Yourself First” – Your Savings Mantra
Focus on You. Pay Yourself First.
Have you ever thought, “I’ll pay all of my bills and save what’s left”? Well, how much was left? When we wait to save until the end of the month, we usually learn that we have more month than money and there is nothing left to save. We challenge you to commit to paying yourself first.
“Pay yourself first.” We hear it all the time, but what does it really mean? Most of us have thought about saving more or saving more regularly, but how many of us REALLY put saving before paying our bills?
A Habit of Saving
Paying yourself first means that before you pay anyone else, including essential living expenses, put money in your savings account. This really is the “golden rule” of personal finance. The amount you save isn’t as important as the habit you create.
The Power of Automatic Transfers
Make saving your priority by setting up an automatic transfer each month. An automatic transfer to your savings account is a perfect way to create a habit of saving AND put yourself first in your financial life. For example, you can set up with your bank an automated weekly transfer of $5 every week to your savings account.
To learn more about what it means to pay yourself first, check out this video.
Saundra Davis is a nationally recognized financial coach and educator. Her experience in the U.S. Navy, where she made every money mistake possible, and her 20 years serving community-based organizations led her to the reality that the best way to help people find a path out of poverty is to help them become their own financial expert.