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What does Pay Yourself First Mean?
Pay Yourself First means that any time you receive money, you should immediately set aside an amount to save.
- Once you deposit money into your savings account it is safer, and you’re less likely to spend it than if you keep it with you.
- When you save at a bank, your money earns interest–free money the bank gives you. The longer your money stays in the bank, and the more you put in, the more interest you earn.
- When you Pay Yourself First, you always have a little extra money in the bank. This comes in handy for unexpected expenses, whether it’s a “rainy day” or an emergency!
- Paying Yourself First helps you make a savings plan to reach your goals, whether they are long or short-term.
- When you deposit money into your savings right away, it becomes a habit, and you’ll remember to Pay Yourself First every time!
What are you saving for?
It’s easier to save money when you have specific goals in mind! Think about both short-term goals like a birthday present for your mom, and long-term goals like college. To plan for these expenses, determine the total cost. (Is one of your long term goals college? This worksheet can help!) Then divide that by the number of weeks, months, or years you have before you’ll need to pay for it. Short-term savings goals should be something you can pay for in a few weeks or months. Long-term savings goals take a year or more.
Get your money faster with Direct Deposit!
Direct Deposit automatically places your paycheck into your checking or savings account.
What are the benefits of Direct Deposit?
- Your check can not be lost or stolen.
- Payments reach your account the day the check is issued, even when you are on vacation, feeling under the weather, or just can’t make it to the bank.
- When your check comes to the bank on time, you’re less likely to bounce a check because of a delay in available funds.
- In a hurry? With direct deposit, your check will be here before you even walk in the door.
To set up a Direct Deposit, talk to your employer today. The paperwork normally takes only a few minutes. One pay period later, the money is in the bank!
