SALT LAKE CITY — You work hard for your money, and where your paycheck goes matters.
We all have certain monthly financial responsibilities such as rent, mortgage, car payment, utilities, and insurance. We all know we have to pay those obligations, but when you get paid, do you intentionally make yourself a priority?
“You have to start thinking about yourself as a vendor, how do you pay yourself. Intentional savings isn't just ‘Well, if I have money left over then I have some to save’, no, it's ‘I am going to pay myself’. So pay your bills, but pay yourself first as well and know that you are one of your own vendors,” said Dave Nellis with America First Credit Union.
If you don't intentionally make yourself a financial obligation then oftentimes that money is wasted away instead of building your own nest egg.
Nellis goes on to say, “Paying yourself is different than rewarding yourself - you might say ‘Oh man I did something good I am going to get a manicure’ or ‘Oh, I am going to have an expensive dinner’ but that's gone. Money will stay there and accumulate wealth if you are intentionally saving that money.”
An easy way to start paying yourself is to set up automatic deposits into a savings account directly from your paycheck-- and anything counts. Even if it's ten or twenty dollars a check, it's a start to saving smarter.
If you need help with budgeting, most financial institutions have free financial planners to help you; all you need is an account at the credit union or bank.
