Pay yourself first - MoneySense

Pay yourself first

Start thinking about your future and implement automatic payroll deductions to help you get there


Plan for the future and set up an automatic payroll deduction that will whisk away 5% to 10% of your paycheque before you ever see it, and deposit that amount in a good, low-cost mutual fund. Soon, with no effort on your part, you’ll have a healthy nest egg.

Why does this trick work so well? Because most people find it hard to save money by sticking to a budget—it’s just too tempting to spend what’s left over. But if you make saving an automatic first priority, you quickly adjust to living on the cash that remains.