Pay Yourself First

If you think you never have any money left over to save, consider changing the equation. Instead of agreeing to save the money that remains at the end of the month, put it away first—before it gets eaten up by other expenses.

That's what it means to pay yourself first, and there are many ways to do it.
Remember that it’s OK to start off with small amounts of money. The important thing is to start.

Here are just a few ideas for paying yourself first:

• Arrange for a certain amount of money to be automatically deducted from your paycheck and deposited into a savings account. Ask your employer if this is an option. If you don't see the money, you probably won't miss it, but that $10, $15, or $20 every week will add up quickly.
• Put the money from a raise, refund, or bonus into savings.
• Make savings part of your spending plan, and treat it like your monthly rent payment.
• After you pay off a loan, use that same amount of money to either begin paying off another loan or put the amount into savings. Don’t be tempted to spend it just because one loan is paid off.

See Tips for Paying Yourself First for more ideas.