ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Save Money: Pay Yourself First

Updated on June 6, 2013

Pay Yourself First

Saving money can be simple if you have a plan and if you use that plan.

Before you create the plan you will need an accurate budget which tells you what your income is and what expenses you have. The surplus, if any exists can be saved.

The budget must reflect all you spend money on, food, coffee, travel, lunch, groceries and so on.

Once you have that worked out and on paper you can review it and see what changes can be made. These changes can enlarge or create that surplus.

Now, if you truly want to save, you will need to add one payee to your budget’s fixed expenses. You have the house payment or rent, credit cards, insurance and whatever other bills you must pay each month.

The one payment that is not on many peoples’ lists is themselves. That is right put you on your must pay list.

In fact, I say what you need to do is develop the pay yourself first mentality. Each and every time you get paid or otherwise come into some money pay yourself a percentage first, before you make any other payments.

The best way to make this happen is when you draw up your budget. Do not consider yourself a budget item; you are more than that.

The household budget is produced after you have deducted your pay.

Now how can you do this?

Well, let us go back to income and expenses.

If you get paid every two weeks, write down how much you bring home or how much is direct deposited into your account. This gives you your working figure. If there is more than one income in the home do the same for each one. Then add them up.

This gives you the total amount of money you earn. Now deduct 5 to 10 per cent from that total as your pay.

That is the amount of money you have for expenses. Use this figure to generate your household budget. If you have a surplus, then you can use that surplus to pay down your debt.

If you break even well you are still saving.

If your expenses exceed your income; then you will not be able to pay yourself the five or ten percent until they match. Try a lower percentage. The idea is to get into a frame of mind where you pay attention to your money because you are benefiting from that attention.

Review your budget; are there any areas where you can reduce your expenses? : Any unnecessary expenses, any hidden costs?

Once you have the budget set and the amount of money that you can pay yourself each time you get paid, no matter how small it is, and then you have set out on the road to savings and getting your money to work for you rather than using it to simply exist.

In time as you pay down debt and find new ways to reduce expense your pay will grow and yoru savings will as well.


Do you pay yourself first?

See results

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)