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
Pay yourself first technique differs from traditional budgeting on its head. Instead of spending then saving leftovers, prioritize savings first.
2
Calculate your take-home pay after taxes and deductions.
3
Decide how much to allocate towards savings and investments, aiming for 10-20% of your income.
4
Set up automatic transfers to whisk your savings away each payday, this removes temptation and ensures consistency.
5
Once your savings are secured, plan your spending for bills, groceries, and other expenses with the remaining amount.
6
In pay yourself first technique you need to monitor your progress and adjust your budget as needed.
7
Reaching savings goals is a big deal! Acknowledge your progress and stay motivated.