“Pay yourself first” means...

Moving savings out on payday, before spending

Why automate savings?

So saving doesn't rely on willpower

Pay the full balance each month

Payday feels great. Then, somehow, the money is gone before the month ends. A simple routine on day one fixes most of that.
Pay yourself first: the moment your salary arrives, move your savings out. Then spend what is left, not the other way round.
A common rule of thumb is 50/30/20: 50% for needs, 30% for wants, 20% for savings. On a US$1,500 salary, that's US$300 put aside on payday.
Set up an automatic transfer for the day after payday. Then saving happens without willpower, like a bill you pay to future you.
Pay your credit card in full every month. Cards often charge 20% to 30% a year on any balance you leave unpaid.
Common mistake
Myth: “I'll save whatever is left at the end of the month.” For most people, nothing is left. So save first and spend what remains.
Key takeaway
Your payday routine: save first, automate it, pay cards in full, and check your budget once a month.

“Pay yourself first” means... Moving savings out on payday, before spendingYou treat savings like the first bill of the month, so it's done before spending eats the salary.
Why automate savings? So saving doesn't rely on willpowerAn automatic transfer happens every month, even on days when you feel like spending.
To avoid credit card interest, you need to... Pay the full balance each monthInterest is charged on any balance you carry. Paying only the minimum leaves debt growing at 20% to 30% a year.
With the 50/30/20 rule, how much of a US$2,000 salary goes to savings? US$40020% of US$2,000 is US$400. The other US$1,600 is split between needs (US$1,000) and wants (US$600).