Question about that 'pay yourself first' budgeting trick I tried

So I kept seeing this idea online about paying yourself first before any bills or spending. Basically you take 10% of your paycheck and move it to savings the minute it hits your account. I tried it for two months now and it actually worked way better than I expected. The problem was I always ended up with nothing left at the end of the month to save. By moving $200 into a separate account on the 1st and 15th, I just had to figure out how to live on the rest. It was tight at first but after a few weeks I stopped noticing the missing cash. The weird part is I even paid off a $60 overcharge from my electric company with the extra buffer. Has anyone else done this and found it messes with your ability to handle surprise costs like car repairs?

2 comments

2 Comments

josepha321d ago

Wait, isn't paying yourself first just a fancy way to make yourself feel broke on purpose? You moved $200 out right away like it was a fixed bill even though it was optional. That electric overcharge is proof - you only had a buffer because you forced a fake emergency and got lucky. What if your car died and you needed $1,500? You just made your life tighter for a trick that only helps if nothing unexpected ever happens. Most people can't skip paying their rent or loan payment when they need cash back, so that savings account in a different bank doesn't help much. Paying yourself first works fine until life punches you in the face, then you're just stuck with less money and the same problems.

christopher9431d ago

Life punches you in the face" - lol okay dramatic much? The whole point of paying yourself first is to build that $1,500 car repair fund before your car actually dies. You're acting like I'm living paycheck to paycheck by choice, but that $200 is literally me buying myself a safety net. Yeah I got lucky with the electric overcharge, but that's the idea - you stash cash so when life happens you don't have to panic. If I didn't do it, I'd be the one scrambling to skip rent when the transmission goes. Its not a magic trick, its just discipline.