Why You MUST Pay Yourself First - Even When Money Is Tight
An essential part of every financial plan (even if it just a "survive until the next paycheck" plan!) is to save money on a regular basis. It doesn't matter what you are saving for:
An emergency fund
Retirement
A big purchase
Paying your monthly bills
Or even just survival money.
The key is to save regularly! And to save you must get into the habit of paying yourself first.
The easiest way to do it is to have money deducted directly from your checking or savings account, if you have one. If you don't have one, get one. Most banks offer a basic checking or savings account that you be started with little money ($50 or less) and charge minimal fees (if any).
Then, start paying yourself first.
Even if it is only $5 or $10 a month. Or more if you can afford it. The ultimate goal is to have this money in case of an emergency. But to get started, you can use it to "hold" money you use on a regular basis.
Just Get Into The Habit Of Saving Regularly, And Do It Right Away!
Another benefit will be that you will get used to spending only as much as you are saving. For people with lots of credit card debt, this is a big change. And a very important lesson about how money works.
In a perfect world, credit cards should just be used to buy things that can afford to pay for with cash. But you don't want to carry the cash around with you all the time.
So if you are not already "paying yourself first" and saving regularly, go to your local bank and start your new savings plan right away!
Money saving tips - lower your monthly expenses!
Not sure which debt relief option is right for you?
We recommend contacting a debt counselor to discuss your options:
