What does it mean to "Pay Yourself First?"

**MTS04** · 11-11-2009, 08:04 PM

What does it mean to you to "Pay Yourself first?" I ask this question because when I asked in real life, I got a few different answers. I'd love to hear your definition of "paying yourself first".

What does paying yourself first mean to you?

**craftypam** · 11-11-2009, 09:04 PM

Paying yourself first means taking whatever percent you choose; usually I've heard 10% right off the top of your check and put it in the bank or invest it.

**loveless82** · 11-11-2009, 09:14 PM

Hi,

Thanks for asking this question I never know how it work either.

**dcompton** · 11-11-2009, 09:49 PM

Same as craftypam. Committing to a certain minimum amount to be saved, and taking that out first.

**Thevail** · 11-11-2009, 10:42 PM

The idea, as I understand it, is to essentially give yourself a pay decrease. Not in a negative way, but just as if you had gotten a job that paid 10% or whatever you choose less than what you actually make.

Then live within that amount... Income - 10%.
Always automatically having the 10% deposited in savings before you even see the money.

**nodmicks** · 11-12-2009, 08:44 AM

We take a set dollar amount every single week and have it auto drafted to ING savings bank. We also have a set amount taken out of our checks for a retirement account.

It is too easy to say you'll save what is left after you pay bills etc and not have any left. This way we have to work with what is left and to be honest it might be a touch hard at first but it sure gets easier!

**Iwant2BDebtfree** · 11-12-2009, 08:48 AM

Ive been doing this for quite sometime. The amount has fluctuated when things got tight and Id have to change the amount for a few weeks, but I take a set amount (whether it be $10 weekly or $500 weekly---every person has their amount they can live without) and do an automatic transfer so you don't even get a chance to miss the $$.