Most people have a daily routine. Going to work, picking up the kiddos from school, dinner, and then bed. What if you did the same for your savings? Hear me out. It’s Friday aka Payday. The first thing you do is transfer 10% of your paycheck into a Savings Account. Why would you do this?
Well,It’s important to prioritize saving money for you and your family’s future. One great way to do this is to “pay yourself first.” This means that before you pay any of your bills/expenses on your budget. You should take a portion of your paycheck and save it into a savings account(or cash envelope). Paying yourself first is a great way to ensure that you are consistently adding into your savings. This is especially helpful if you are living check-to-check.
When you pay yourself first, you can decide how much of your income you want to set aside for savings. It can be as low as 10%.
Example:
You’re paid $2,500/month
That’s $1,250/bi-weekly
First thing you would do is transfer(automated) / withdrawal 10% from your $1,250
Which is $125/every 2 weeks.
Let’s see what $125 can turn into:
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1 Month $250
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2 Months $500
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3 Months $750
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6 Months $1,500
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1 Year $3,000 or $3,250 for 26 paychecks.
That’s 3K already by itself. Not including any other forms of money that you may receive. Such as bonuses, raises from work, tax refund, birthday money, and more…
Can you imagine what you could do with that 3k? You could:
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Create an Emergency Fund
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Get A Month Ahead
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Investments
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Go On A Vacation
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Make A Big Purchase
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Or put it towards any of your savings goals of choice.
Recap the steps you will need to take. Create a budget, Receive paycheck, Pay yourself first, and start saving.Saving money can be so much fun. It takes time and patience. But in the end it will be worth it. It may take a while before you start to see the results, but the effort will be worth it in the future. Paying yourself first is a great way to start building your savings, and it will pay off in the long run.