The ancient Babylonians were credited with mean the first people who came up with the idea of "paying yourself first." Although it is an old idea, it is still just as effective today as it was then. If you want to be able to grow your wealth, and live a more comfortable lifestyle, paying yourself first is critical. Here are a few tips and tricks that you can use to pay yourself first and boost your savings.
Take Some of Your Paycheck First
In some cases, you can have a portion of your paycheck put directly into some sort of savings account. Some payroll service providers make it possible for employees to send money from their paychecks to multiple accounts. You could have some of your paycheck go into your main checking account and another portion go into a savings account or an investment account. By doing this, you won't even notice the money coming out of your paycheck. Before long, you'll have a large sum built up in your savings account.
Another way that you can pay yourself first is to have automatic transfers set up with your bank account. For instance, you can set it up to have an automatic transfer done from your bank account to a savings account every time you get paid. When you make it automatic, you take it out of your hands. You don't have to make a conscious decision to transfer money to your account every month. By doing this, you can accumulate some major savings along the way.
One of the big mistakes that many people make when it comes to saving money is that they try to wait until later in the month to transfer money to a savings account. They think that they'll pay all of the bills and expenses that they have, and then save anything that is left over. The problem with this scenario is that there is nothing left over. If you transfer the money right when you get paid, you have a much better chance of being able to actually save some money. Otherwise, you'll probably end up spending most of the money before it can hit your savings account.
Special Debit Card
Some banks are now offering special debit cards that transfer the change left over on each purchase to a savings account. For example, if you spend $4.20, $.80 will be transferred to your savings account. This makes it easy to get some money in a savings account.
Overall, there are plenty of ways for you to start saving, if you will just do it. Make it a priority to begin saving money today.