Pay yourself first
A saving habit where a set amount moves to savings on payday, before you pay bills or spend anything.
Paying yourself first flips the usual order of earn, spend, then save what is left. Savings comes out first, usually by an automatic transfer or a split direct deposit, and you live on the rest.
The amount should be small enough that rent, bills and minimum debt payments are still covered. Many people start at 5% to 10% of take-home pay and raise it with each pay increase.
Example
Take-home pay of $3,200 × 10% = $320 moved to savings on payday, leaving $3,200 − $320 = $2,880 for bills and spending.