Pay Yourself First Automatically 

What Does Pay Yourself First Mean? 

In its simplest form, the phrase means “Save Money First”. The basic idea is that you take a portion of your paycheck every pay period stash it away first. This means saving money first before you pay bills, buy groceries, or go on an online shopping spree. Financial experts recommend saving between 10% and 20% of every paycheck to ensure you have enough funds for unexpected emergencies or expenses.

Pay Yourself First
Pay Yourself First

What Does Pay Yourself First Mean? 

In its simplest form, the phrase means “Save Money First”. The basic idea is that you take a portion of your paycheck every pay period stash it away first. This means saving money first before you pay bills, buy groceries, or go on an online shopping spree. Financial experts recommend saving between 10% and 20% of every paycheck to ensure you have enough funds for unexpected emergencies or expenses.

How to Start Saving with Automation

Chime is the first online bank that makes it easy to pay yourself first.  Chime’s Automatic Savings feature allows you to automatically direct 10% of your paycheck into your Chime Savings Account every time you get paid. As an added perk, as a Chime Member, you can get paid up to two days early with early direct deposit compared to traditional banks. It’s a great way to get a jump-start on your money goals.

Pay Yourself First
Pay Yourself First

How to Start Saving with Automation

Chime is the first online bank that makes it easy to pay yourself first.  Chime’s Automatic Savings feature allows you to automatically direct 10% of your paycheck into your Chime Savings Account every time you get paid. As an added perk, as a Chime Member, you can get paid up to two days early with early direct deposit compared to traditional banks. It’s a great way to get a jump-start on your money goals.

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Pay Yourself First

How to Start Today 

 

1) Save a Percentage of Every Paycheck

Paying yourself first starts with saving a small portion of your paycheck every month. The goal is to make an active effort to save money before you decide to spend your hard-earned paycheck on purchases that you may not need. Simply changing your mindset to saving money first will help you think more critically about how you spend your money every month and ensure you are tracking your savings goals.

2) Prioritize Saving Before Spending

Many people feel that they don’t make enough money to even start saving, but the reality is that they are not prioritizing long-term money goals.  When you pay yourself first, you prioritize your own personal savings over other expenses. Paying yourself first is a way to do your future self a favor. You’re also ensuring that you can handle other unexpected issues that may pop up down the line.

3) Let Automation Do the Work 

Financial expert and author David Bach says “When that money is moved before you can touch it, that’s how real wealth is built.”  The best way to pay yourself first is to let automation make the decision to save money for you.  When money is out of sight and out of mind, you less likely to want to spend it. When it comes to saving for your future goals, automation will help you get out of your own way and make real progress toward your financial goals.