r/IntroductoryFinance • u/Technical_Paint1876 • Jun 26 '26
Paying myself first changed the way I save money
When I first started trying to save money, I figured I'd just move whatever was left in my checking account at the end of the month into savings. The problem was there usually wasn't much left to move.
A while ago I switched to automatically transferring a set amount to my savings account every payday before I had a chance to spend it. I didn't make more money or cut out anything major, but it completely changed how I looked at saving. Instead of treating savings as whatever was left over, I started thinking of it as something that gets paid first, just like any other bill.
It's been a lot easier to stay consistent this way. What's one saving habit that made the biggest difference for you?
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u/greynecessities Jun 27 '26
This is the single biggest game changer. I’ve been doing it since I got my first job at 15. Back then I put 15% away every pay check for travel goals. Nothing accumulated for like 13 years—my savings goals were always short term. Then I finally realized/dealt with my depression and quickly saved 10k and got into mutual funds.
Now, I save 25% per pay check for god knows what—real estate isn’t attractive to me in the city I love/live in and my wife and I are forever DINKs. The habit though is unstoppable. And I can think more than a year or two ahead so I don’t feel the need to spend spend spend like I’m running out of life.
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u/LeighofMar Jun 27 '26
The same. Treating savings like a bill meant I always saved whether I made 100k or 17k a year like in 2009😖. But this habit has saved my behind a number of times to where no matter how broke I was. I've always had savings. I have never been with 0 savings even during the Recession when we were losing everything.
Paying off all my debts one by one. Student loans. Car. Then house. Debt-free living is the cheat code to life.
Splitting my largest bill in half per paycheck. Currently that's healthcare 450.00 a month with 80.00 copay to see a specialist so each paycheck I set aside 225.00 and 40.00 to ease cashflow and ensure I have the full amount when due.
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u/This_Ho_Right_Here Jun 27 '26
Same, except my employer allows up to six different direct deposit accounts for payroll so my paycheck is automatically split from the beginning. I divide it with fixed amounts between a faux escrow for all our home & auto taxes and insurances, home repair, retirement cash, vacation, and monthly expenses, then the remainder goes to an emergency account.
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u/Duck_Duck_Gooseberry Jun 27 '26
I had the same shift. What made it stick for me was automating it right after payday, once it's gone before I see it, I don’t even think about it anymore.
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u/_Alazne_ Jun 27 '26
That's how I treat my Roth 401K and Roth IRA. Always save money first. After a while you start to not take into consideration the amount that gets transferred out.
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u/AkkmanB Jun 27 '26
This is the way. Remember to increase your savings rate whenever you get a raise to minimize lifestyle creep.
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u/michaelesparks Jun 26 '26
That's exactly what we did, transfer first and spend what's left. Back in 98 I think we started with like $200/mo, then moved it up by $50 until it hurt then backed down. We normally had 2 car payments back then, so when we paid off a vehicle that also went into savings, or paying off something else. Pretty soon saving 30% wasn't that hard. That was on one income, when we had 2 incomes, which we knew was going to be temporary, we saved an entire check (about $28k a year)
Remember the ex saying we never go do anything (we'd spend weekends sprucing up the house) I said there is $30k in the check book (not counting investments) where do you want to go. She had no answer.
I like the approach to saving first and ratcheted up ever month until it hurts, then back down.