What It Means To Pay Yourself First

Updated: November 17, 2023

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Paying yourself first is the simplest way to save money. I’ve learned about this concept a long time ago. It actually took me a few months before applying it, but when I did, I never stopped. I still do it until now.

Paying yourself first is very simple though it can be quite difficult to apply at first.

If you like reading books on personal finance, I’m sure you’ve encountered this advice and I surely hope that you’re able to follow it. If this idea is new to you, then read on and see how you could start investing in yourself.

How To Start Paying Yourself First

Be frugal for a period of one payday. This does not mean that you will eat instant noodles every day or walk 20 kilometers just to save on bus fares.

Live comfortably without doing any impulsive buying and committing unnecessary expenses. If this means skipping on your daily Starbucks, then so be it.

After which, see how much of your salary is left at the end of the period. From there, determine what percentage of your earnings do you want to save. I recommend starting at ten percent (10%).

This means that every payday, you will set aside that much first. No questions, no buts, no exceptions.

If that seems a lot, then try a smaller figure but make changes in your spending habits so you could increase the rate to at least 10%.

Then, open a savings account, preferably one that has no ATM card, so that it won’t be convenient for you to withdraw cash anytime. You will deposit the payments to yourself there.

Let me emphasize that this is about paying yourself first, so once you get your salary, your next step is to go to the bank and deposit the allocated percentage or you can also do an online transfer. What’s left of your salary is for your other bills and daily living expenses.

Feel free to spend all that’s left until the next salary (Yay!).

What do you do with the money that you saved?

You can only spend the money in your savings account in two ways.

First is for matters of life and death or financial emergencies. And second is for investing.

It may also be wise to hold on to the money in that account for a few months and see it grow. This will bring you a sense of accomplishment and satisfaction. After that, start looking for opportunities so that you can make that money work for you.

I’d like to end with a quote from Chris Johnson, author of the website, Wise Bread. He says, “Be proud and protective of your earnings. This money is your chance at great wealth.”

Yes, indeed it is!

What to do next: Click here to start your financial journey with IMG Wealth Academy


  1. nice article, you are very inspirational. that’s exactly what I’m doing; “investing”. But some people think, “saving money” is abnormal. nice to know that there’s someone out there who understands how i spend my money.

  2. thank you carlo, please come back here often to get more tips and strategies on how to achieve your financial goals.

    do subscribe to my blog via RSS or email so that you will be updated with what’s new in my blog.

  3. […] You worked hard to earn more money so you deserve a little more luxury. Just remember to always pay yourself first, prioritize your debts and live within your means,” I added. “Again, don’t berate […]

  4. […] Build your savings. The easiest way to save money is to pay yourself first. If you have successfully done this, then find ways to earn more by doing more work. A second job […]

  5. […] with no savings but is about to start on a job that pays P15,000 a month. If you diligently pay yourself 10%, meaning you save P1,500 each month, and continually invest that money on an instrument that gives […]

  6. Great post, reminds of the lessons I learned reading the book Rich Dad, Poor dad.

    By the way, it was my first time on your site and you are doing a good job. You have great content here.

  7. I think I will apply this to myself. Thanks much for a very nice article. I should start paying myself. lol. I have been lurking this page for a long time now, I remember the SM trash to Cash post.. hehe More power to you Fitz.


  8. hi sir fitz,

    i’ve been searching for some tips on how to start a business and i find your site very useful and informative. I will definitely be one of your frequent visitors from now on.

    god speed.

  9. i’ve been frequenting your site, as a lurker. this, i just did last week when i opened up my BPI Direct Save Up account… I think this will really help me save since it does not have an ATM or passbook for easy withdrawals.

  10. Hi,
    I enjoyed your talk on the BDJ Fair 2 weeks ago. I was very inspired and enlightened which prompted me to visit your website. I just have a question. Would it be wise to save in AFPSLAI using my boyfriend’s name since he is a member of AFPSLAI. Thank you and more power!

  11. Hi Rizamay,

    Thanks for the comment. AFPSLAI is a good and stable investment instrument. However, I would advise you not to invest in it under your boyfriend’s name.

    I’m just being practical here, but until you the two of you get legally married, it would be wise to put your money in investments under your own name.

  12. Great article! Straight to the point and easy to understand, especially for newbies like me. Thank you!

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