It has happened to all of us that we are happy when we receive our income -either in the form of salary or rent- but we are sad when at the end of the month everything seems to have evaporated in expenses, and we do not keep anything for savings. By managing money in this way, we are giving priority to our expenses, neglecting the savings that will allow us to achieve our goals and dreams. So that this does not happen and you can prioritize your savings, the solution is simple: Pay yourself first! It is very easy if you keep in mind the following:
- Set the amount of your savings:
Decide what portion of your income -monthly, fortnightly or weekly- you will allocate to your savings. It is recommended to save 10% of your total income, but you can start with a smaller percentage if it makes you feel comfortable and increase it over time. It is important that it be a realistic figure, that it helps you meet your goals but does not hang you financially. - Separate and save money from savings:
It is a good practice that once you receive your income, immediately separate the money from your savings, thus avoiding the temptation to spend it and it is easier to keep track. We recommend putting it in a savings account or in another financial product that is specially designed so that your money obtains a return.
Pay yourself first! And you know, you don’t need a large amount of money to start saving, you just need enough motivation to start, even with small amounts. It’s all a matter of taking the first step, being consistent and disciplined!
