What does 'pay yourself first' mean?

Put part of your pay into savings first.

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  1. Move part of each paycheck into savings before spending ✔
  2. Spend on yourself before paying any bills
  3. Pay your friends back before you save

Why: When you get paid, move some money into savings right away, ideally automatically. What is left is what you budget for spending.

Huh, didn't know that: The CFPB suggests saving a specific amount each time, and adding more when you can afford it.

The dad joke
A parent gave her kid some sound advice before going to accounting school: Study hard so you can be audit you can be.
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References

Answer: Move part of each paycheck into savings before spending. When you get paid, move some money into savings right away, ideally automatically. What is left is what you budget for spending.

  1. CFPB: An essential guide to building an emergency fund www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund
    pay yourself first by putting a portion of it automatically into savings
    Checked 2026-10-10.
  2. CFPB: An essential guide to building an emergency fund www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund
    Aim to make it a specific amount, and if you can occasionally afford to do more
    Checked 2026-10-10.

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