Usually, when money comes in, you pay your bills first, and then whatever is left, you spend on yourself or save. But this way of thinking keeps most people with very little money left for saving or investing.
With a “pay yourself first” mentality, you know that you can’t spend what you don’t have, so you pay yourself first, and whatever is left is put towards your expenses.
First, you need to automate your finances so that money is transferred from your paycheck or checking account into a savings or investment account before you have the chance to spend it.
Automatic payments are perhaps the best way to ensure that you always pay yourself first. Set up an automatic transfer on payday, so there is no need for any decision-making. It’s automatic.