Just like strength training is the first step to a healthier you, "Paying Yourself First (PYF)" needs to be your first step in getting financially fit. This month's video fit tip gives you one technique to start this financially fit tradition, but the 5 steps below are like your PYF circuit training.
- Isolate Savings - Separating your savings is a great way to focus on your goals. Create different accounts for paying yourself first, getting that new TV, kids college fund, or even a new car. Isolating your goals shows the real impact of your savings.
- Calculate Monthly Expenses - Knowing what you spend may lead to saving. Seeing the real cost of your "daily cup of coffee" over a month may suprise you. If you find a place to make savings, you could add those funds to one of your goal savings account.
- Pass It On - You modeling the PYF habit is vital for kids. They practicing it for themselves turns an idea into a movement. Use money earned for chores or their allowance and let them save for their own goals. Insist they pay themselves first to create their own healthy financially fit habit. Remember: kids are more visual so creating a chart or an online visual aid may help.
- Get Interested in Interest - Make your savings work for you. Find an account, such as a CD or Money Market which pays you every month. Be sure to do your homework as every account's options are different. Even kids can get in on the fun. For example, Texas Trust Credit Union has a smart start CD for kids under 18 with a minimum balance of $100.
- Set Up Automatic Deposits - You can gain without pain. Have some of your check deposited straight into your savings. Since you don't see it, you won't even notice. Then, honor your own word and stick to a regular PYF plan. It is just like your exercise routine. You're the one who knows if you cheated or not. Just think of me as your personal financial trainer.
Stick to your circuit training, and you will build your financial fitness every month.
Need a word of encouragement or have a great story? Stop by our forums. Share your successes and tips on building a financially fit family. Together, we can start a movement.
The mint makes the money first, its up to us to make it last.
~Jainie~
Glad Texas Trust is helping families make it a tradition of postive financial fitness. I hope to use these tips for my family who has 3 kids under 3. Thanks Jainie.
ReplyDeleteAmber D, Texas Trust Credit Union
I love the philosophy of "pay your self first". I try to practice this every paycheck. Sometimes it is hard to do but when it does work, it nice to see my savings account growing, even if it does so very slowly. Thank you Texas Trust for the information.
ReplyDeleteJuanita H, Mansfield, Texas Trust CU
I love the idea of pay yourself first, setting money back for a nest egg or even a rainy day. The funning thing is there is no set criteria for paying yourself first. Whether you start on a small scale or on a large scale, the key word is to START.
ReplyDeleteReuben A., Athens, Texas Trust Credit Union
I totally agree. I used to think that I could put what was left at the end of the month in a savings account. The only problem was I rarely had any money to put back. Direct deposit made saving so simple. I now have money go into my savings account and my checking account with every paycheck.
ReplyDeleteDebiC,Cedar Hill, Texas Trust Credit Union