Pay Day Ritual

Today I heard some disheartening news. “Paying yourself first doesn’t always work.”

The term “paying yourself” refers to the awesome principle of saving.

Thankfully I didn’t believe that news, and I never will. I hope you don’t either. Paying yourself first WILL work. I don’t know what your bills look like every month but if they equal your paycheck then you need to cut some of them down. Sell the car. Cut the cable. Turn off the air conditioner. Just find a way to get some extra in there. THEN it is always possible to pay yourself first.

I love paydays. I love them because I get to “get stuff done” in the financial world on those days. I usually wake up early on Pay Days and see my paycheck deposited into my checking account. Then I go about doing the following things…Save. Pay. Spend.

Save

I dish out money from my paycheck into different savings accounts. I know how much I can dish into these savings account because I have this thing called a budget (it’s rad.) And I put my savings into my budget. It’s basically just another bill. But it’s a bill I get to pay MYSELF! 😉 I do this first so I don’t have an excuse later on to back out of it. Some people even have it automatically taken from their paycheck and put in another account, but I enjoy doing it manually for some reason. 😉

Pay

This is about the necessary evils called bills. We hate them but we love them because they are the way we get to LIVE. Regardless of the due date of a bill, if I have the amount that is owed, I pay it on payday. Most of my bills are paid out of the second paycheck of the month but the big one (rent) is paid out of the first. A lot of things are automatically taken out of my checking account so I don’t have to worry about it but there are a few I manually pay. And payday is a great time to do it. Why spread out paying bills over a period of days when you can just spend a few minutes in front of the computer getting it all done at once??

Spend

Well, everything else is left to spend! It’s so simple. This is where you buy groceries and gas and movies and everything else you love to spend your money on. A budget will help you make sure you have enough left over for all of this. This is money you CAN spend guilt-free because you’ve paid yourself, you’ve paid your bills and now you get to just live.

Super easy right? Save. Pay. Spend.

Of course, some don’t feel their paycheck is big enough to handle all three. That’s when we begin to just “pay” and “spend.” But like I said earlier–find a way. Even if it’s saving $10 or cutting the “spending” down to the necessities. I promise saving will pay off in the end. I’m no expert but I’ve begun to do this, and it’s extremely rewarding.

Remember–no age is too young or too old to start. But of course, the earlier you start the better!

Do you have a ritual you participate in on payday? 😉 What do you think of the “Save. Pay. Spend.” concept? Does anyone else have any good ideas?

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One Response

  1. I like it…simple yet effective!

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