Paying Yourself First

Posted By: Dr. Frugal in Saving on 06/07/2007 at 17:43:24

One of things that I did not learn until late in life was to pay myself first. When you get a paycheck take the amount you've budgeted for savings and "pay" yourself. Treat this installment into your savings just like you would any other bill. Putting money into savings is more difficult in principle because if you don't do it no one is going to shut off your lights or foreclose on your house. In this area you're really only accountable to yourself and, if you have one, your spouse.

I think just having the mindset of "paying yourself" makes more psychological sense than "contributing to savings" or whatever spin you currently put on it. Personally, I have a hard time "tricking" myself into saving but there's certainly something to be said for having the proper mindset.

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