Pay Yourself First
When you Pay Yourself First (PYF), you're mentally establishing saving as a priority. Building savings is a powerful motivator - it's empowering to know you have funds for emergencies or financial goals.
Many of people spend their money in the following order; bills, fun, savings. Not surprisingly, there’s usually little left over to put in the bank. By bumping savings to the front - savings, bills, fun - you're able to set the money aside before you rationalize reasons to spend it.
Today's economy is evidence of how important it is to have savings. We recommend saving between three to six months worth of living expenses in case you lose your job or experience a serious health issue. Are you prepared?
Let's try an exercise that is aimed at revealing your actual saving needs. Access the Cash Reserve Needs Assessment.
Published Apr 6, 2009.