The Benefits of Paying Yourself First

How do you pay yourself first? When you say pay yourself first, it means prioritizing putting money earned into your savings before other things, treat it like it is one of the most important expenses in your monthly bills.

I’ve started paying myself first on the start of my financial journey, with my regular income I pay myself 10% then budget the remaining to the monthly expense, bills and debts. On side projects I get I pay myself 20%, then the rest to debt payment.

If you are some of those that believe that you cannot start saving until you are out of debt then you are not on the right start to getting rich. You can save even when in debt. Savings of any amount is still a saving, start by setting aside 1-2% of your income and aim to increase it to 10% or higher. People can live and survive even with debt and paying off debts can take awhile. If you pay all your earnings to your debt first without saving you always feel broke and may find yourself struggling from payday to payday. Who ever wants to feel broke?

The benefits you can get

1. Better management of your finances
2. Desire to earn more so I can pay yourself more
3. No more feeling of being broke
4. Be more open to opportunities where you can invest your hard earned savings
5. Feel your family’s future is starting to be secured

With the small savings I have managed to pay myself last month I’m now studying on small investments opportunities like time deposit or CD’s.

If you are really deep into debt that you cannot even manage to save, consider looking for debt consolidation methods, take another look on how you budget your finance and check your living lifestyle on what else needs to be changed.

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