Saving money can sometimes feel like something you’ll get around to when there’s enough left at the end of the month. But if you wait until then, there may not be much left to save.
That’s where the ‘pay yourself first’ approach can help.
What does ‘pay yourself first’ mean?
Paying yourself first simply means putting money into your savings before you start spending your income.
For example, if you get paid £1,800 each month and decide to save £100, you put that £100 into your savings first. You then have £1,700 to use for your bills, essentials and other spending.
The idea is simple: make saving a priority rather than an afterthought.
Why is paying yourself first a good financial habit?
One of the biggest benefits is that it takes some of the thinking out of saving.
If you plan to save whatever is left at the end of the month, it can be easy for that money to disappear on everyday spending. By putting money aside as soon as you’re paid, you’re more likely to build your savings consistently.
Even a small amount can make a difference over time.
For example:
£10 a week = £520 a year
£25 a week = £1,300 a year
£50 a week = £2,600 a year
You don’t necessarily need to save a large amount. The important thing is finding an amount that fits comfortably within your budget and making it a regular habit.
Make saving automatic
One of the easiest ways to pay yourself first is to automate your savings.
Instead of having to remember to transfer money every payday, you can arrange for a set amount to be saved automatically. This can help make saving feel like a normal part of managing your money.
Save straight from your salary with M for Money
With the M for Money Salary Saving Scheme, you can have an amount taken directly from your salary and paid into your credit union savings.
This means your chosen amount is put aside before you have the opportunity to spend it, helping you build your savings regularly without having to remember to make a transfer each month.
It can be particularly useful if you find that you intend to save but often spend the money before you get around to putting it aside.
How much should you save?
There’s no one amount that works for everyone.
Start by looking at your income and regular outgoings and work out what you can realistically afford to put away. It could be £10, £20, £50 or more each payday.
The key is to start with an amount that feels manageable. You can always review it later as your circumstances change.
And remember, saving shouldn’t come at the expense of essential bills or leave you struggling to cover your everyday costs.
Start paying yourself first
Building good financial habits doesn’t have to be complicated. By putting a little money aside each time you get paid, you can gradually build a savings pot for the things that matter to you – whether that’s an emergency fund, a holiday, Christmas or simply having some extra money set aside for the future.
Ready to make saving part of your payday routine?
Find out more about the M for Money Salary Saving Scheme and see how you could start saving directly from your salary.