Savings is the backbone to any sound financial plan.
As the saying goes, a penny saved is a penny earned, but sometimes finding that penny to save can feel like a struggle in and of itself.
Many who struggle to start saving for their future find the “Pay yourself first” method to be a simple yet powerful approach.
While most people will go through their monthly expenses and try to save what is left over, the pay yourself first plan is reversed.
If you’re having problems jumping on the savings bandwagon, try out these pay yourself first tips and tricks to get on the right track.
Follow the rules and actually pay yourself first, not second or third and definitely not last.
The most important thing to recognize about paying yourself first is that it won’t be easy. Self-discipline is essential. If you really want paying yourself first to work, you will have to cut back on your extraneous expenses throughout the month.
Once you get into the swing of things, the benefits of paying yourself first are innumerable. Whether you’re looking to start an emergency fund or the building blocks of a down payment on a home, paying yourself first is a habit you will never regret.
Photo thanks to Images_of_Money under a creative commons license from Flickr.