The new year marks the perfect time to set future goals and make improvements. What did you do last year that you desire to change? Many people declare restrictions as part of their resolution. However, what if your goal provided a reward instead? For 2020, we suggest you pay yourself first, every single month.

Pay yourself first to get ahead

Primarily, you’ll want to adopt the “pay yourself first” method as a way to pad your savings and investment accounts. You chose a percentage (1 through 5), and that amount of your income will go into your savings account before making any monthly payments. Afterward, you pay your bills as usual.

There are several reasons you should pay yourself first. Not only does it cut frivolous spending, but it also helps people to have good financial standing even if they occasionally deviate. Paying yourself first sets wealth management as your top priority.

Why is building your savings account so important?

Routinely adding funds into your savings account will increase your retirement and investing opportunities. It will also prepare you for unexpected expenses or emergencies. Over time, paying yourself first provides freedom from financial stressors.

What if I can’t afford to pay myself first?

When starting this method, we usually question our take-home income. You can pay yourself first regardless of your paycheck, however, it’s always good to consider earning extra. Can’t live without your daily latte? No problem, add a side hustle to cover it. Now is the time to create a plan that works precisely for you.

Resolve to do more with your money in 2020

Your money can go a long way. This year, stick to your budget and resolve to pay yourself first. No longer will your retirement or savings linger as an afterthought. You’ll deposit into those accounts first and joyfully prepare for the remainder of your financial future.