Here’s my little experience on why you should pay yourself first. Couples months ago I thought I was paying myself first, but instead, I was budgeting everything at first and kept what left to add to my saving or investment account.
This is the wrong way to do it. With this method, I was over budgeting in a lot of fun category like dining out and was not limiting myself to only what I needed. After couples month, I finished with nothing left to save and I though that would be impossible to cut anything.
Pay yourself first
After seeing that, I started paying myself first and budgeting everything else with what I was left with. This way I lowered my dining out category and my fun money category. These categories became so big that I thought I had the minimum in it, but I had like three times what I really needed. This is one of the reasons why you should pay yourself first and budget after. If you budget before, you only keep growing your spending category and you will be left with nothing to save after couple. It’s easier to budget once the saving is done.
To start paying myself first, I started with a 10$ saving by week and now I am saving between 50$ to 100$ by week. I started with a small amount to be able to do it since I thought I couldn’t cut anything more. And every couple week, I put more than what I’ve put couple weeks ago and lowered my spending slowly. Going slow made myself be comfortable with the fact that I lower my spending and I didn’t really see the difference with the week before. In this way, I didn’t stop to save after a couples weeks like all my past years.
These are my trick I used to save more. Readers, are you paying yourself first?