Always pay yourself first. This is something which we can do as a start to manage our finance prudently. I do think that the majority of us tend to spend their salary first once they receive it. Only at the end of the month, the remaining amount will then be transferred to a savings account. If you actually think of it, we are actually using the money to pay others first before we pay ourselves. In some cases, the savings account is not really one since funds are frequently transferred from it to cover for the shortfall that may occur in any month or to spend on big ticket items. Thus in the long term, the savings is likely to remain at a stagnant level.As such, it can be hard to pay yourself first. However, there are a few steps which you can do. Firstly, you should make your savings account as inaccessible as possible. Preferably, there should be no ATM card linked to this account so there will be no chance of you withdrawing cash from the ATM from this account. Secondly, establish only one link to your savings account to other accounts and that account should be the account which your salary will be credited to. Thirdly, reduce the transfer limit of this savings account to the minimum so that you will not be allowed to transfer a large sum of money from this savings account. Lastly, you should set up an automated instruction in your internet banking to transfer a set amount of money from the account which your salary will be credited to, on the payday itself. This ensures that you get to save a sum of money first before you get a chance to spend your salary. Hopefully, this ensures that your savings will grow to a substantial amount.
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yes always pay for myself :)
ReplyDeletethanks for good articles
Hi,
ReplyDeleteThanks for your compliment.
Kay
good idea
ReplyDelete