How To Pay Yourself First In  4 Easy Steps

Sometimes the simplest phrases can change the way of doing things better.

Pay yourself first is one such financial term that may alter how you manage your money thus far.

First and foremost, paying yourself first is a reverse budgeting strategy that prioritizes consistent savings.

What Does  “Pay Yourself First” Mean?

We’re Not  Saving Enough

According to Bankrate’s Emergency Savings survey, more than half (51%) of Americans can’t cover three months of expenses for an emergency.

It is an excellent time to pay yourself first so that you set aside money for unexpected emergencies and retirement savings.

It’s Time To Put Your Finances In Order

By paying yourself first, you prioritize your savings, directing money toward your emergency funds, retirement accounts, and where most needed.

1. Set Financial Goals

Distinguish your fixed living costs from variable costs, which will provide a sense of your discretionary spending and what areas you can make reductions.

2. Evaluate Your Monthly Budget

Start with a smaller amount if that is more comfortable, but increase to a 20% percentage and distribute the amounts automatically to designated accounts.

3. Automate Finances With Your Savings Goals

Swipe Up To Read More

Read More

How to Buy Stocks for Beginners: 4 Easy Steps to Get You Started

Stress Less, Earn More: 9 Easy Jobs That Pay Well