Paying Yourself First To Save More

Few things about budgeting sound exciting, but it’s something everyone must do, regardless of how much money they make. Financial freedom is not possible for those who don’t know where their money goes once it's earned. Additionally, you’ll never find a way to save your money if you’re not applying the most important rule of budgeting: pay yourself first. You are your most important investment, and paying yourself first is the most beneficial thing you can do for your financial future. Here’s a comprehensive guide to paying yourself first and what it means for your financial situation.

What Does Paying Yourself First Mean?

Paying yourself first means you’re putting money into your own savings account before allotting funds for anything else. Most people work within the confines of the idea they should pay their bills first, have fun second, and save what’s left over at the end of each month or pay periods. However, it’s often smarter to pay yourself first, pay your bills second, and spend what’s left over after your priorities are met. You must pay yourself to build savings, emergency funds, and to provide for retirement. If you don’t save first, you’re more likely to spend your money and not save as much as you can. Prioritize yourself above everything else, and you will reap the benefits both now and later. Paying yourself first is profitable, as your money is going back into your bank account, and you can guarantee it’s not being wasted frivolously on things that don’t matter or won’t benefit you in the long run.

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