Pay Yourself First Technique of Budgeting

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The "Pay Yourself First" technique prioritizes saving by automatically allocating a portion of your income before you even budget for expenses, here are some things to know.

1

Shift Your Mindset

Pay yourself first technique differs from traditional budgeting on its head. Instead of spending then saving leftovers, prioritize savings first.

2

Know Your Income

Calculate your take-home pay after taxes and deductions.

3

Set Savings Goals

Decide how much to allocate towards savings and investments, aiming for 10-20% of your income.

4

Automate the Process

Set up automatic transfers to whisk your savings away each payday, this removes temptation and ensures consistency.

5

Budget What's Left

Once your savings are secured,  plan your spending for bills, groceries, and other expenses with the remaining amount.

6

Track and Review

In pay yourself  first technique you need to monitor your progress and adjust your budget as needed.

7

Celebrate Milestones

Reaching savings goals is a big deal! Acknowledge your progress and stay motivated.