Why ‘Paying Yourself First’ is so important

Most of us have heard the term ‘Pay Yourself First’, but what does this actually mean? And why should we do it?

Quite simply, before paying bills, groceries, loans… set aside a portion of your income to save and invest. If we wait to pay ourselves until after we have paid for everything else, we usually have little (if anything) left. How can you get ahead financially, if your at the bottom of the list.

Prioritise paying yourself before anything or anyone else, and ensure you are saving whilst still meeting your other financial commitments.

Do this by starting small, pay yourself what you think you can afford. Over time, you’ll live on what is left, and soon you will live on less. As you reduce your expenses, increase what you pay yourself.

With so many fee free banking accounts and multiple offset accounts, you can set up a simple system to transfer money and save yourself from spending it! There are also some great new low cost investment tools available like Acorns that you can use as a means of forced saving that is revolutionising investing for new generations.

So what are some of the benefits of Paying Yourself First:
  • You learn to live on less – if you prioritise saving over spending, you have no choice but to spend less
  • Saving becomes a priority, not an afterthought
  • You will spend more mindfully
  • The extraordinary power of Compound Interest!
Speak to your Financial Strategist about setting up a budget that focuses on saving as a priority.

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