When payday arrives, it can be tempting to think about all the things your money needs to cover: rent or mortgage, bills, food, travel, the children, subscriptions and everything else that comes with everyday life.
And if there’s anything left at the end of the month, you might think, “I’ll save that.”
The problem is that there often isn’t much left.
That’s where the simple habit of paying yourself first can make a real difference.
What does “pay yourself first” mean?
Paying yourself first simply means putting some money into your savings before you start spending your monthly income.
Instead of waiting until the end of the month to see what’s left, you decide how much you want to save and make it a priority from the start.
For example, if you receive your salary and immediately put £50 into your savings, you then budget the rest of your money around what you have available.
It might not sound like a huge amount, but £50 a month adds up to £600 over a year.
And the best part? Once it becomes part of your routine, you may barely notice you’re doing it.
Why does paying yourself first work?
- It makes saving a habit
Saving can be difficult when it relies on motivation.
There will always be something else you could spend your money on. By making saving automatic, you remove the need to make the decision every month.
A regular amount goes towards your savings before you have the chance to spend it.
Over time, saving becomes a habit rather than something you have to remember to do.
- It helps you prepare for unexpected costs
Unexpected expenses are a normal part of life.
A broken appliance, car repair, school expense or last-minute journey can quickly put pressure on your finances.
Having some money set aside can give you a financial cushion, helping you deal with unexpected costs without immediately turning to credit.
You don’t need to build a huge savings pot overnight. Start with an amount that feels manageable and build from there.
- Small amounts can make a big difference
You don’t have to save hundreds of pounds every month.
Even putting aside £10, £20 or £50 each payday can help you develop a regular saving habit.
For example:
£10 a month = £120 a year
£25 a month = £300 a year
£50 a month = £600 a year
£100 a month = £1,200 a year
The important thing isn’t necessarily how much you save. It’s getting started and making saving a regular part of your financial routine.
- It can help you reach your goals
Saving is easier when you have something you’re working towards.
Perhaps you’re building an emergency fund, saving for Christmas, planning a holiday, replacing your car or simply trying to become more financially secure.
Having a regular amount going into your savings can help turn a big goal into a series of smaller, manageable steps.
Instead of thinking, “I need to save £600,” you can think, “I’m going to put £50 aside each month.”
Suddenly, the goal feels much more achievable.
Make saving easier with the Salary Saving Scheme
One of the easiest ways to put the pay yourself first principle into practice is through the HertSavers Credit Union Salary Saving Scheme.
With Salary Saving, an agreed amount can be deducted from your salary and paid directly into your HertSavers savings account.
This means your savings are put aside before the rest of your salary reaches your bank account, helping you make saving part of your normal payday routine.
There’s no need to remember to make a transfer every month and no need to wait until the end of the month to see what’s left.
You simply choose an amount that works for your budget and let your savings build over time.
Start with what you can afford
The key to successful saving is making it sustainable.
Don’t choose an amount that leaves you struggling to cover your essential expenses. Instead, look at your budget and decide what you could comfortably put aside each payday.
You can always review your saving amount as your circumstances change.
And remember, saving £20 consistently is better than planning to save £100 but finding it too difficult to maintain.
Your future self will thank you
Paying yourself first isn’t about never enjoying your money. It’s about making sure that some of your money is working towards your future before it’s spent on everything else.
By making saving automatic and consistent, you can gradually build a financial safety net and work towards the things that matter to you.
So, when your next payday comes around, why not pay yourself first?
Find an amount that works for you, make saving a habit and let your savings grow one payday at a time.
Ready to start saving?
Our Salary Saving Scheme can help make saving easier by putting money aside directly from your salary.
Speak to us to find out how Salary Saving could work for you.
