How to Pay Yourself First

Whether you're creating a budget, spending your latest paycheck or paying off old debts, it's all too easy to overlook your need for savings. If this sounds familiar, it may be time to rethink your priorities and tweak your spending habits accordingly. You should be your own top financial priority. Pay yourself first by putting aside a set amount of money or a set percentage of your paycheck before you pay bills or spend any money.

The best way to do this is to automate the routine. If you never see the money in your paycheck, you probably won't miss it. Set up one or more automated deductions from your paycheck. Deductions may go towards an individual retirement account, a company retirement plan or your personal savings account.

It's best to start early. This gives you the maximum number of years to save up ...