What does 'pay yourself first' mean?

CHOOSE 2
Set up an automatic transfer for savings so you don't forget

Save towards your goals as soon as you get paid

Wait until the end of the month to see how much money you have left to save

Spend on the things you want before you pay for any essential expenses each month

1 answer

'Pay yourself first' is a financial strategy that prioritizes saving money before paying for other expenses. The two actions that best represent this concept are:

1. Set up an automatic transfer for savings so you don't forget.
2. Save towards your goals as soon as you get paid.

These choices ensure that you allocate a portion of your income to savings right away, avoiding the risk of not having any money left to save at the end of the month.