I haven't been able to get the "automatic savings" thing to work. I itch to have that money in my savings account and always end up transferring the money myself. It feels good to move those dollars, so I have just started to do a transfer to savings every pay day. It's gotten to be a reward in and of itself. Paying myself first feels GOOD!
Whether that money ends up in your savings account automatically or manually on a regular basis doesn't matter. The end result is the same. Great job saving, and if the feeling of making that transfer every pay day helps you to keep doing what you're doing, don't change a thing. Keep it up, @Gina H.
@Aaron G…. I'm keeping it up! ;->
I feel so guilty when “paying myself first”!! I know it must be done,m!
I feel so guilty when “paying myself first”!! I know it must be done,m!
It may feel that way now, @India H., but think about it this way. If you don't pay yourself first, you should feel guilty about denying your future self financial security and independence.
It's always difficult to budget, but if you make the effort and allocate some of those savings to an emergency fund when times are good, that effort can really pay off at times like this when it's that much harder.
Great post!! I used to do this with my first job and I don’t know why I never continued with it and just forgot. I’m definitely going to start implementing this strategy again to build my savings. Thank you!!
Richest Man In Babylon - recommended reading! Paying yourself is one of the main points of this short book!
I feel so guilty when “paying myself first”!! I know it must be done,m!
India,
Please do not feel guilty for paying yourself first. You worked hard for that money and you have to take good care of yourself. You deserve to have some things for yourself.
I feel so guilty when “paying myself first”!! I know it must be done,m!
It may feel that way now, @India H., but think about it this way. If you don't pay yourself first, you should feel guilty about denying your future self financial security and independence.
That’s definitely true! I’ve gotten better at it!
I automate my savings monthly and also use the Digit app.
I automate my savings monthly and also use the Digit app.
@Kathy W., automating savings is a great way to make sure you're paying yourself first. Personally, I have 401(k) and HSA contributions automatically taken directly from my biweekly paycheck. I also have contributions to my Roth IRA and taxable brokerage account automatically taken from my checking account on a weekly basis. While automating savings is great, it's even better if you can gradually increase the automated savings amounts over time. Keep up the good work!
Absolutely. I am my biggest expense. It took a while but I was able to cut my drastically and continually cut my living expenses. 33% of my gross income is invested pre-tax and about 40% of my net is invested in a Roth IRA and real estate projects. Always looking for ways to pay myself first :)
Thanks for the input. I'm new to saving but you made some great pointers. I'm going to consider some sacrifices myself.
Enjoy the money you make!
exactly this! Fill up your savings first; spend what is left over.
Paying yourself first definitely works but increasing your income is the solution. You can only save so much, but you can increase your income infinitely. Side gigs, new jobs, starting a business are all ways to get ahead with more money. That's my focus for the rest of 2020. I will continue to save but in addition to saving more money weekly I want to add at least $500 more dollars income monthly. I'll share a few of those ways in more posts.
I paid myself first to the tune of $1,000.00 in July!!!
Cutting my spending and getting rid of cable has really helped with saving.
