We ve all seen the lists of 10, 25, even 100 great ways to save money. But trying to implement more than one new habit at a time can be overwhelming and often leads to failure to make any change at all. What if you had one tip that s easy and guarantees some more cash flows into your savings account every month?
PAY YOURSELF FIRST.
This budget tip is one that s often touted but often ignored. We feel like we have to pay all our other bills before our savings account. But once the electric and heat, rent or mortgage, and groceries are paid for it looks a lot harder to put a little cash into your savings account. By the time your done with all your bills, you might be sick of feeling like that responsible adult you know you are. Or you might look at that number that s left and think you might need it soon so putting it in savings is useless because it will just come back out.
But what if your savings account were a bill, too? And what if you paid it before any of the others? Before you had time to let monkey mind talk you out of saving part of every paycheck?
Well, then you d find yourself implementing a savings plan.
It doesn t matter how much you pay yourself. What matters is that it s either a number or percentage that you pay every time you get paid. The number should make you feel good about yourself and the way you manage your money. You should be willing to hold yourself accountable to that number. Even if you can only put in five dollars or three percent of your paycheck, it s five dollars or three percent more than you had last month.
If you want to make this goal really easy, just set up an automatic transfer to your savings account for every payday and you savings will slip into their special account before you have the chance to intercept it. That s saving made easy.
