Pay Yourself First: A Smarter Way to Save
Pay Yourself First: A Smarter Way to Save
Most people save what’s left at the end of the month - if there’s anything left at all.
But what if you flipped that habit on its head?
The Spend First Trap
It’s easy to spend first and hope something remains. Bills, groceries, nights out – it all adds up.
And while there’s nothing wrong with enjoying your income, the problem is that saving becomes optional rather than essential.
This approach often leads to inconsistency, missed goals, and the feeling that saving is too hard. The reality? Saving after spending rarely works.
Flip the Script: Save First, Spend Second
Paying yourself first means treating saving like a non-negotiable expense - just like rent or power.
As soon as you get paid, set aside a fixed amount for savings or investments before you do anything else. It could be $50 - $100 a week into a savings account, or 10% of your income into KiwiSaver.
Whatever the amount, the principle is the same: make saving a priority, not an afterthought.
Why It Works
It builds discipline without relying on willpower
It helps you reach goals faster - emergency fund, house deposit, retirement
It puts you in control of your money, not the other way around
You can still enjoy your money - just after your future self gets paid too.
Final Thoughts
The best time to start paying yourself first is now. Set up an automatic transfer and forget about it. You’ll be surprised how quickly it adds up.
And no, this doesn’t mean cutting out everything fun. It just means shifting the order of how you manage your money.
So next payday, ask yourself: did you pay yourself yet?
Until next time, keep saving and spend with purpose.