You might think that your budget is too tight to even think
about saving money, but like many, you also can't imagine starting your day
without that uber-delicious, hand-crafted coffee drink from your favorite java
joint.
The reality is this - many of us have no problem spending $25 a week on drinks
and other indulgences but we fail to put money into a savings account.
One answer to this oh-too-common dilemma might be to adopt
the Pay Yourself First philosophy.
The concept is simple. When your paycheck arrives, before
you do anything else, deposit some of that moola into a savings account. The
amount may vary month to month, or you might determine a fixed amount based on
your personal budget. Whichever is the case - this out-of-sight, out-of-mind
approach to personal finance might save you a great deal - literally.
The pay-yourself-first budgeting method is low maintenance
compared with other savings plans. It doesn't require you to
keep track and prioritize every expense that you have. It can
also help you focus on the big picture and reduce impulsive purchases. When
people save first, they have less money to spend and tend to use the remainder
on things they need or value. That doesn't mean you have to forego that caramel
latte with an extra shot of espresso and chocolate shavings; it just means you
might decide to indulge in it three times a week instead of five, putting the
$12 a week you save into your personal account.
You might think by simply not ordering a fancy drink on
Tuesday that you have saved money and, technically, you might be right. But, by
physically depositing that money into a savings account, you are
proactively saving. The money is no longer sitting in your checking account,
taunting you. Out of sight, out of reach, out of mind.
Paying yourself first is a great option if you prefer a
hands-off budgeting system or don't want to feel as though you're budgeting at
all. So, open that savings account and start paying yourself first! Making
yourself a financial priority might just be more invigorating than caffeine!
