Paying yourself first

Before I got a job, I told my mom and my sister than when I start earning money, I would save a particular percentage of my income right away. They both looked at me, laughed at me, and though I was pretty naive. In their opinion, you can’t possibly save first when you have several bills to pay. The bills you pay is fixed, but the amount you save can be variable. I ignored them and was determined to do just that. That decision has helped me to build my emergency fund.

Although I consider myself a natural saver, I have set up systems that helped me to meet my savings goal, and you could to.

Automating my savings: When I started working, I signed up for direct deposit at work, and I made sure that I allocated a particular percentage that goes directly into my savings account and the rest into my checking account for paying bills. This strategy allows me to believe that the money in my checking count is the only thing in can spend before the next payday. Of course, it takes a great amount of discipline to not the savings account money, the first battle has been fought after the automated allocation.

I once read something interesting on twitter about saving. The person said that they do not have a spending problem, they just don’t make enough money (paraphrasing of course). I sincerely believe that it is possible to save regardless of how much money you make in general. Of course there are exceptions to the rule but make sure you ask yourself if you are the exception to the rule.

If saving right now is difficult for you, you can start from saving 1% of your income and then you can increase the percentage every month. You don’t have to be a natural saver to start saving, and you don’t have to make a lot. You just have to start from some where. So start today!




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