Young Americans Blog

Concept of the Month: Pay Yourself First

By: Chelsea Ellison Published: May 11th, 2015

2015_Bank_Concept_Pay_FirstWhat does “pay yourself first” mean?

  • Once you deposit money into your savings account it is safer, and you’re less likely to spend it than if you keep it with you.
  • When you save at a bank, your money earns interest—free money the bank gives you. The longer your money stays in the bank, the more interest you earn.
  • When you Pay Yourself First, you always have a little extra money in the bank. This comes in
    handy for unexpected expenses, whether they are “rainy day” or emergency!
  • Paying Yourself First helps you make a savings plan to reach your goals, whether they are
    long or short-term.
  • When you deposit money into your savings right away, it becomes a habit, and you’ll remember to Pay Yourself First every time!

Direct deposit

You may want to consider direct deposit to get your money faster and make it easier to pay yourself first.  Direct deposit automatically places your paycheck into your checking or savings account.

  • Your check can not be lost or stolen.
  • Payments reach your account the day the check is issued, even when you are on vacation, feeling under the weather, or just can’t make it to the bank.
  • When your check comes to the bank on time, you’re less likely to bounce a check because of a delay in available funds.
  • In a hurry? With direct deposit, your check will be here before you even walk in the door.
  • To set up a Direct Deposit, talk to your employer today. The paperwork normally takes
    only a few minutes. One pay period later, the money is in the bank!

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