Pay yourself first....
By miatantra
@miatantra (8)
Philippines
February 23, 2007 8:23pm CST
Lately, i just realized that I spent beyond my takehome money for the past month (through my credit cards), and that my credit card bills are topping up, thus i barely have enough to get by for the current month. I started reading books and articles regarding budgetting. One of the most common recommendation is that, as we start to work we should be able to set aside something for the future, thus 'pay yourself first' before you pay for the expenses. This fund should at least be 5% and a maximum of 50% of your take home, depending on your salary range. This is rather new to me coz i am the type of person who really spends my take home pay. And quiet honestly, once i am able to pay for my credit cards, i would like to practice this kind of saving habit. What about you, have you started 'paying yourself first'?
2 people like this
3 responses
@maryannemax (12156)
• Sweden
24 Feb 07
honestly, i am not ashamed to say that even at my age, 28, i never used any credit card in my life. the reason, i scared of the fight that i might overspend and might be into so much shopping without noticing how high my bill might be. two years ago, my dad asked me if i want to have an extension of his credit card. but i said no. i'd rather spend something that can fit within my budget.
i actually hate even borrowing money from people. yep. i am a thrifty person but i love to treat myself, too and shop. i try to live within what i only earn. and yep, i always put something into my savings account whenever i receive money. i just love how my money on the bank grows. not much i know. but it's better than not saving at all.
as for you, i am happy to know that you will start to save something for your future soon. believe me, it's worth it.
1 person likes this
@miatantra (8)
• Philippines
25 Feb 07
good for you for starting to save early. at 30 sometimes i feel that i have wasted a decade not having even a cent in the bank. starting a culture of 'saving' is a choice i have to make and a habit i have to follow.
1 person likes this
@maryannemax (12156)
• Sweden
25 Feb 07
yep. the very moment you started saving, it's gonna be a start of a new wonderful habit. it's kinda difficult at the beginning. but later on, just like me, you'll enjoy seeing your money grown in the bank.
@wacky_ice (68)
• Philippines
28 Feb 07
Yes I'm following this formula:
Income - Savings = Expenses rather than Income - Expenses = Savings. Good Luck!
@thomson201 (209)
• Australia
24 Feb 07
definetly have something like this in place has paid for many holidays and deposit for a house paid for a wedding and a car. it works
