Most people spend first and save what's left. Flip that, and your finances transform.
"I always said I'd save 'whatever's left' at the end of the month. There was never anything left. Then I started auto-transferring $200 on payday. Suddenly I had $2,400 at year's end."
The Concept
Traditional approach: Income → Spending → Savings (whatever's left... usually nothing)
Pay yourself first: Income → Savings → Spending (what's left)
How to Do It
Quick Win
Set up automatic transfers from checking account|checking to savings account|savings that happen right after payday. Treat it like a bill you can't skip.
| Goal | Monthly Auto-Transfer |
|---|---|
| Emergency fund | $100-300 |
| Retirement | Via 401k payroll deduction |
| Vacation | $50-100 |
| Big purchase | Whatever you decide |
Why It Works
Pro Tip
Out of sight, out of mind. Money that disappears before you see it doesn't feel like a sacrifice.
- No willpower required
- No "I'll do it later"
- Savings happen whether you're motivated or not
- You adjust your spending to what's available
Start Small
Do This
Can't do 20%? Start with 5%. Can't do 5%? Start with $25. The habit matters more than the amount.
Increase by 1% every few months. You won't notice the difference.
The Bottom Line
You'll never "find" money to save. You have to take it first. Automate it, forget about it, and let the system work.