Different Ways of Paying Yourself Each Month

I’ve always heard that you should pay yourself first before you calculate your monthly budget. I have always tried to set aside at least 10% each month but lately it has been pretty hard to put anything back without borrowing from it before months end. I have found some ways to put back what I need and in the process I have learned to live on a smaller budget.

 Take advantage of your employer and enroll in direct deposit. Have a percentage of your paycheck automatically deposited into a savings or retirement account where your money could possibly be matched or buy stock. Have any interest or dividends reinvested into the account. If you are in debt or have extra bills that need to be paid, make sure to keep the percentage at a reasonable number. You can always raise the amount later when things are paid down.

 If you get a tax refund every year, have your employer decrease withholdings and invest that extra money.

 Add any extra income to your ‘pay your self first’ account. You can turn something you like to do or a hobby into extra income.

 Pay your self after paying off any debt. Whether you pay it off in a lump sum or as a final payment, keep putting back the monthly amount as though it’s still there; especially if it’s a car payment.

 Cut back on those things that you can really live without. Put back the money you save and adjust your monthly budget for the next month to reflect the changes. If you use coupons or receive discounts, put back the money you saved.

 If you already have a lump sum, invest your savings in an interest bearing account. There are several out there that will cater to what you are planning for in life. Here’s a link to a Retirement Planner Calculator.

While paying down my debt and paying off my extra bills, I am able to put back what I want and live comfortably on what is left.