4 Reasons Why You Should Pay Yourself First

Saving for your future requires prioritising yourself as a debtor and the easiest way to do this is to pay yourself first. As this concept goes, paying yourself first has a host of financial and psychological benefits to offer so read on for some practical money saving advice to get you started:

Take tips from those that did

The one thing in common thatfinancially successful people have is that they paid themselves before putting their money into other ventures. Who better to learn the best way to achieve financial success than from those that have done it themselves?

Paying yourself first makes you think twice

Consumerism is at an all-time high and there are temptations all around us. Sales banners, discount codes, bargains… they are the marketing man’s dream and an effective way to make us spend our money on things we don’t really need to impress people we don’t really care about.Getting into the habit of paying yourself first means you will spend less on other things, working towards building a secure financial future for yourself. Paying yourself first helps you save before spending rather than waiting to see whether you have anything left to put away after the shopping trip.

You will have increased security

Paying yourself first brings you financial security in the event of job loss, accident or other circumstance which might prevent you from earning an income. According to Credit Action, a UK based money education organisation, more than 1500 UK citizens were made redundant and about 100 properties were repossessed on a daily basis at the turn of the decade. Building up at least 3 months’ salary will provide a reassuring financial cushion to fall back on.

It’s a habit that lasts

Once you begin the habit of paying yourself you will enjoy the experience of watching your money grow. Your self-confidence will grow alongside and you will have peace of mind that even in the event of job redundancy or business loss, you have savings to tide you over a difficult period.

Paying yourself first is a healthy financial habit that everyone should undertake.Change the way you save (or start if you don’t already), and pay yourself first!

This site isn’t about being miserly with your money. It’s about being clever with your cash. By getting out of debt and learning how to make your money work for you, you can free yourself and create the life you want.