Pay Yourself First: The Habit That Can Help You Build Wealth

Marisa Torrieri
Posted

moneyinhandYou may always say that you’ll up your retirement contributions (next pay period, you promise!) or stash a little extra in your emergency fund, but somehow another month passes and you still haven’t done it.

The problem is likely that by the time you’ve paid for everything else—rent, groceries, utilities and maybe even a few dinners out—you often don’t have enough left to add to savings … at least not until your next paycheck. And so the cycle goes.

If this sounds familiar, it could mean you’re not in the habit of paying yourself first, which isn’t the same as spending money on yourself. “Paying yourself first means saving before you do anything else,” says David Blaylock, CFP® with LearnVest Planning Services. “Try and set aside a certain portion of your income the day you get paid before you spend any discretionary money. Most people wait and only save what’s left over—that’s paying yourself last.”

In other words, the goal of paying yourself first is to help make sure your future self’s key financial goals are covered, including building up an emergency fund, contributing to retirement and saving for any other long-term goals, like a down payment on a new home. Bottom line: It’s important to have these bases covered before you spend any portion of your paycheck on, say, a happy hour with friends.

Of course, this means you need to get into the mind-set of paying yourself first—and that can be a challenge for even the most money-savvy among us.

RELATED: 5 Money Mistakes Even Good Savers May Make

  • Harbinger

    Many people, once they pay housing costs, food, utilities are not using extra money they should be saving to eat out. They have nothing past the essentials. Are you proposing they not pay their utility bill so they can “pay themselves first”?

    • wilfreddo

      I think the idea is that if you are spending 100% of your salary on those ‘essentials’, you need to lower your standard of living (cheaper rent, older car) in order to save first.

      • Mai Fernandez

        So basically live in a dump? My last apartment I was paying 1000/mo and it was a dump. It was infested with pests and i couldnt even sleep because the walls were so thin I could hear everything my neighbors were doing. I would come Home and I couldnt even relax. It was horrible!!!!! So now I pay 1100, and at least happy to come home after leaving the job I dispise.

    • Angelina Denson

      Harbinger,

      That’s true and hard… I hope you’re not paying $1000 a month by yourself! In Colorado you can get a decent apartment for that much. I currently split $795 a month for a two bed two bath apartment.

  • http://www.military.com/spouse/military-deployment/reintegration/returning-to-home-life-after-deployment.html Jeffrey Dowling

    Thanks to Dr Brave for bringing back my wife,and brought great joy to my family?

    Hello to every one out here, am here to share the unexpected miracle that happened to me three days ago, My name is Jeffrey Dowling,i live in TEXAS,USA.and I`m happily married to a lovely and caring wife,with two kids A very big problem occurred in my family seven months ago,between me and my wife so terrible that she took the case to court for a divorce she said that she never wanted to stay with me again,and that she did not love me anymore So she packed out of my house and made me and my children passed through severe pain. I tried all my possible means to get her back,after much begging,but all to no avail and she confirmed it that she has made her decision,and she never wanted to see me again. So on one evening,as i was coming back from work,i met an old friend of mine who asked of my wife So i explained every thing to her,so she told me that the only way i can get my wife back,is to visit a spell caster,because it has really worked for her too So i never believed in spell,but i had no other choice,than to follow her advice. Then she gave me the email address of the spell caster whom she visited.(bravespellcaster@gmail.com}, So the next morning,i sent a mail to the address she gave to me,and the spell caster assured me that i will get my wife back the next day what an amazing statement!! I never believed,so he spoke with me,and told me everything that i need to do. Then the next morning, So surprisingly, my wife who did not call me for the past seven {7}months,gave me a call to inform me that she was coming back So Amazing!! So that was how she came back that same day,with lots of love and joy,and she apologized for her mistake,and for the pain she caused me and my children. Then from that day,our relationship was now stronger than how it were before,by the help of a spell caster . So, was now stronger than how it were before,by the help of a spell caster . So, i will advice you out there to kindly visit the same website http://bravespellcaster.yolasite.com,if you are in any condition like this,or you have any problem related to “bringing your ex back. So thanks to Dr Brave for bringing back my wife,and brought great joy to my family once again.{bravespellcaster@gmail.com} , Thanks.

    Are you passing through any of these problems,

    DO YOU NEED YOUR EX BACK VERY FAST

    DON YOU WANT YOUR LOVER TO LOVE YOU AS NEVER LIKE BEFORE

    ARE YOU SUFFERING FROM A LONG TIME SICKNESS

    ARE YOU FACING FINANCIAL PROBLEMS

    ARE YOU SEEKING FOR A GOOD JOB

    DO YOU WANT TO BECOME A HOUSE OWNER

    ARE YOU LOOKING FOR A FIRST CLASS GRADE

    DO YOU WANT TO COME OUT FIRST IN YOUR EXAMS

    ARE YOU A STAR AND YOU WANT TO BE SO POPULAR TO THE WHOLE WORLD

    DO YOU WANT TO BE RICH

    DO YOU WANT YOUR BUSINESS TO KEEP MOVING

    DO YOU HAVE A COMPANY OF ANY KIND AND YOU WANT IT TO EXPAND

    DO YOU WANT YOUR HUSBAND OR WIFE TO KEEP TO YOUR WORLD

    ARE YOU FACING ANY MARITAL PROBLEMS

    ARE YOU FINDING IT DIFFICULT TO GET PREGNANT FOR YOUR HUSBAND

    ARE YOU EXPERIENCING MISCARRIAGES ANY TIME YOU TAKE IN

    DO YOU WANT TO COMPETE IN ANY LOTTERY GAME

    ARE YOU FACING HARDSHIP

    HAVE YOU BEEN THREATENED BY SOMEONE

    DO YOU WANT TO BE SUCCESSFUL IN ANY THING YOU LAY YOUR HANDS ON

    IS YOUR SON OR DAUGHTER BEHAVING STRANGELY

    ARE YOU FACING WITCH CRAFT MANIPULATIONS

    DO YOU WANT TO CAST A STRONG LOVE SPELL ON YOUR GIRL OR BOY FRIEND

    DO YOU NEED MAGIC POWERS TO DO ANY THING YOU WANT

    ARE YOU FINDING IT DIFFICULT TO CHOOSE A LIFE PARTNER

    DO YOU WANT YOUR PARENTS TO BE PROUD OF YOU

    ARE YOU EXPERIENCING FAILURE AND DISAPPOINTMENT IN ANY THING YOU DO.(ETC)

    I will advice you out there to kindly visit the same website http://bravespellcaster.yolasite.com,if you are in any condition like this,or you have any problem related to “bringing your ex back. So thanks to Dr Brave for bringing back my wife,and brought great joy to my family once again.{bravespellcaster@gmail.com} , Thanks.

  • http://www.military.com/spouse/military-deployment/reintegration/returning-to-home-life-after-deployment.html Jeffrey Dowling

    Thanks to Dr Brave for bringing back my wife,and brought great joy to my family?

    Hello to every one out here, am here to share the unexpected miracle that happened to me three days ago, My name is Jeffrey Dowling,i live in TEXAS,USA.and I`m happily married to a lovely and caring wife,with two kids A very big problem occurred in my family seven months ago,between me and my wife so terrible that she took the case to court for a divorce she said that she never wanted to stay with me again,and that she did not love me anymore So she packed out of my house and made me and my children passed through severe pain. I tried all my possible means to get her back,after much begging,but all to no avail and she confirmed it that she has made her decision,and she never wanted to see me again. So on one evening,as i was coming back from work,i met an old friend of mine who asked of my wife So i explained every thing to her,so she told me that the only way i can get my wife back,is to visit a spell caster,because it has really worked for her too So i never believed in spell,but i had no other choice,than to follow her advice. Then she gave me the email address of the spell caster whom she visited.(bravespellcaster@gmail.com}, So the next morning,i sent a mail to the address she gave to me,and the spell caster assured me that i will get my wife back the next day what an amazing statement!! I never believed,so he spoke with me,and told me everything that i need to do. Then the next morning, So surprisingly, my wife who did not call me for the past seven {7}months,gave me a call to inform me that she was coming back So Amazing!! So that was how she came back that same day,with lots of love and joy,and she apologized for her mistake,and for the pain she caused me and my children. Then from that day,our relationship was now stronger than how it were before,by the help of a spell caster . So, was now stronger than how it were before,by the help of a spell caster . So, i will advice you out there to kindly visit the same website http://bravespellcaster.yolasite.com,if you are in any condition like this,or you have any problem related to “bringing your ex back. So thanks to Dr Brave for bringing back my wife,and brought great joy to my family once again.{bravespellcaster@gmail.com} , Thanks.

    Are you passing through any of these problems,

    DO YOU NEED YOUR EX BACK VERY FAST

    DON YOU WANT YOUR LOVER TO LOVE YOU AS NEVER LIKE BEFORE

    ARE YOU SUFFERING FROM A LONG TIME SICKNESS

    ARE YOU FACING FINANCIAL PROBLEMS

    ARE YOU SEEKING FOR A GOOD JOB

    DO YOU WANT TO BECOME A HOUSE OWNER

    ARE YOU LOOKING FOR A FIRST CLASS GRADE

    DO YOU WANT TO COME OUT FIRST IN YOUR EXAMS

    ARE YOU A STAR AND YOU WANT TO BE SO POPULAR TO THE WHOLE WORLD

    DO YOU WANT TO BE RICH

    DO YOU WANT YOUR BUSINESS TO KEEP MOVING

    DO YOU HAVE A COMPANY OF ANY KIND AND YOU WANT IT TO EXPAND

    DO YOU WANT YOUR HUSBAND OR WIFE TO KEEP TO YOUR WORLD

    ARE YOU FACING ANY MARITAL PROBLEMS

    ARE YOU FINDING IT DIFFICULT TO GET PREGNANT FOR YOUR HUSBAND

    ARE YOU EXPERIENCING MISCARRIAGES ANY TIME YOU TAKE IN

    DO YOU WANT TO COMPETE IN ANY LOTTERY GAME

    ARE YOU FACING HARDSHIP

    HAVE YOU BEEN THREATENED BY SOMEONE

    DO YOU WANT TO BE SUCCESSFUL IN ANY THING YOU LAY YOUR HANDS ON

    IS YOUR SON OR DAUGHTER BEHAVING STRANGELY

    ARE YOU FACING WITCH CRAFT MANIPULATIONS

    DO YOU WANT TO CAST A STRONG LOVE SPELL ON YOUR GIRL OR BOY FRIEND

    DO YOU NEED MAGIC POWERS TO DO ANY THING YOU WANT

    ARE YOU FINDING IT DIFFICULT TO CHOOSE A LIFE PARTNER

    DO YOU WANT YOUR PARENTS TO BE PROUD OF YOU

    ARE YOU EXPERIENCING FAILURE AND DISAPPOINTMENT IN ANY THING YOU DO.(ETC)

    I will advice you out there to kindly visit the same website http://bravespellcaster.yolasite.com,if you are in any condition like this,or you have any problem related to “bringing your ex back. So thanks to Dr Brave for bringing back my wife,and brought great joy to my family once again.{bravespellcaster@gmail.com} , Thanks.///////////

  • http://www.it-sales-leads.com/industry-experience/telecommunications.html Barbara Hoover

    Hello There! Paying yourself first doesn’t mean that you will spend you money for yourself literally, it just requires you to earn it with more adequate thinking and in effectiveness in spending. Thanks for sharing!

  • Angelina Denson

    I love this! I just got started on putting $150 to start with in a separate savings account I don’t see right when I get paid. I am going to pay down my debt first then slowly increase that amount every month.