saving-budgeting

5 Easy Ways to Pay Yourself First (Your Future Self Will Thank You)

If saving money always seems like an afterthought, the “pay yourself first” method might be just what you need. Rather than waiting to see what’s left at the end of the month, this approach makes saving the first thing you do. It flips the traditional budgeting script.

In December 2024, Americans set aside an average of 3.8% of their income for savings.[1] This is a fraction of what most financial authorities recommend. Worse, a 2025 Bankrate survey shows that 59% of U.S. consumers don't have enough money save to cover an unexpected $1,000 expense. [2] If your aim is higher, it might help to try something different. Your future self deserves to be a priority, not an afterthought.

Below, you’ll learn what the pay yourself first budgeting method is, why it matters, and five simple ways to help make it a habit.

What Is the 'Pay Yourself First' Budgeting Method?

The pay yourself first method is a way to prioritize saving before you spend. That means you don’t spend on bills, food and fun first. Instead, you move a portion of your income directly into savings or investments as soon as you get paid. Then, you pay for essentials.

It’s sometimes also called “reverse budgeting” because it focuses on building wealth before covering everyday expenses. Think of it like putting your oxygen mask on first. By making sure you’re taken care of, you put yourself in a better position to handle life’s financial surprises.

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Why You Should Pay Yourself First

Paying yourself first helps you build savings with less stress. It makes saving automatic and consistent.

Here’s why this method works for so many people:

It makes saving a priority.
It helps you build good savings habits.
It supports long-term goals.

When you pay yourself first, your goals come first, not last. And, you’re more likely to save regularly when it becomes routine. Whether you’re building an emergency fund or saving for a home, this method creates momentum.

To support your efforts and track goals, try out Centier’s money management tool.

5 Simple Ways to Pay Yourself First

To implement the pay yourself first method, start by choosing a percentage to save. Then, open a separate savings account and set up automatic transfers. Keep track of your progress and try to save portions of any tax refunds, bonuses and gifts.

1. Start With a Percentage

The first thing to do is choose a percentage of your income to set aside. A budget plan can help you line out all of your income and expenses, then decide what will work best.

Some systems, like the 50/30/20 rule, suggest you set aside 20% of your income for savings or debt repayment. If that feels unrealistic, consider a smaller number, such as 5% or 10% of your take-home pay. Over time, you can adjust this amount as your income or expenses change.

To see how your savings can grow with different amounts set aside, use Centier’s future savings calculator.

2. Open a Separate Savings Account

A separate savings account can help you avoid the urge to spend what you’ve saved. Some people even open multiple accounts for different goals (like vacations or car repairs). For extra motivation, you might give each account a nickname that reflects its purpose.

Most savings accounts earn interest, so the money you deposit could gradually increase. Depending on the size of your fund, you may also want to consider alternative account types. For example, Certificates of Deposit (CDs) might be a good way to build wealth. Alternatively, Money Market Accounts (MMAs) may offer more growth on higher balances.

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3. Set Up Automatic Transfers

One simple way to pay yourself first is to set up recurring transfers from your checking to your savings account on payday. Automatic transfers can be a life saver. Even $10 a week adds up over time.

It’s smart to set up automatic transfers on the same day your paycheck goes into your account. That way, the money goes to savings before you spend it. Just don’t forget to write it down, so you know where your money went.

Another option is to split your direct deposit. You can have part of your paycheck go into savings and the rest into checking. That way, you don’t have to move it yourself or worry about tracking the transfer.

If you’re not sure where to begin, learn about sav ing with small deposits. You can even automate automatic round-ups for every debit card purchase using Centier's Round Up Savings feature.

4. Track Your Progress

Seeing your savings grow over time can help you stay motivated. Use a savings tracker, a spreadsheet or Centier’s goal-setting tools to watch your progress.

You can also set mini-milestones, like saving $100, then $500, to celebrate along the way.

5. Save Windfalls and Extras

Instead of spending tax refunds, bonuses or gifts, make it a habit to save at least part of them. Since these funds aren’t part of your regular income, you won’t miss them.

This is a smart way to give your savings a boost without changing your monthly budget.

How to Pay Yourself First With Inconsistent Income

If your income goes up and down, saving the same amount each month can be challenging. A set percentage might not work, either.

When your income isn’t steady, consider picking a small amount you can always save. Then, add more when you earn more. For example, you could save 5% in down months and 10% or more in high-income months.

Also, skip auto transfers and save by hand so you don’t overdraft. Plan every dollar to make sure saving is part of your monthly budget.

These tips help you keep saving, even when your paycheck changes.

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Start Small, Stay Consistent With Centier by Your Side

The pay yourself first budgeting method isn’t about how much you save. It’s about making saving a priority. When you build the habit of putting your future-self first, it can help making and reaching savings goals simple. It could also help you to be more prepared for emergencies. Plus, it can help big goals feel more reachable, and your finances may even feel easier to manage.

Start with one step. Whether that means setting up a transfer, opening a new account or saving part of your next bonus, the key is to take action. Your future self will thank you.

To start your new savings plan, book an appointment with a Centier expert today.

Source:

[1] https://www.statista.com/statistics/246268/personal-savings-rate-in-the-united-states-by-month/

[2] https://www.bankrate.com/banking/savings/emergency-savings-report/