You work hard every day, yet you are probably the last one to see any of your paycheck. Paying yourself first is one of the fundamental stones of a strong financial future. But putting money aside every month is SO hard. After all, after all your bills and living expenses are covered there is barely anything there to add to your savings account. This is why you need to pay yourself first and do it automatically before any other bill is deducted from your paycheck.
Here are the three biggest benefits of setting automatic savings.
- It makes saving money painless (out of sight out of mind)
- It makes saving money a priority in your life
- It helps develop a habit
The $20 Challenge: Right now I challenge you to set up to have $20 transferred directly into your savings account after every paycheck. As soon as that paycheck hits your checking account, set for $20 to be automatically transferred to your savings account. Don’t be scared! You CAN do it! yes, you can? After three months months I challenge you to bump up the amount by another $20.
|Have a topic you would like address in the Daily Money Tip? Send me an email with your burning question. Read previous Money Tips here.
Thank you for reading the Daily Money Tip: Money Management for the Time Deprived.