How To Start Saving Money | Pay Yourself First

In today’s video, we’re gonna talk about the old-school personal finance advice of saving money which is called - Pay Yourself First.

I’ve briefly mentioned this concept in my previous videos, but this method is so damn good and easy to follow at the beginning, that it’s worth a separate video.

We talk a lot about investing, how compound interest can multiply your investments over time, but it could be not so clear to understand where this starting money comes from.

The rule sounds like this:
As soon as you get a paycheck, passive income, or any kind of income - take a portion of it and save right away. As simple as that. How much to take? It’s ideal to start with 10-20% of your net salary. As for beginners starting off with 10% should be doable. In case you make $48,000 annually, which is around $2800 a month after taxes, you should be taking $280. Regularly. And if at the moment saving 10% seems impossible to you - try with 2% or $56/month just to start and feel what it’s like.

I promise, as soon as you’re consistent, watching my videos and smashing that like button below, the amount you can save will be increasing.
So, the main point of this method is to get used to saving money from the scratch, and once you start with even 2%, then it’ll be easier later and you’re gonna be saving more and more.

Where to save?
I’d rather open a completely separate checking account so you’re not that tempted to spend it, cause you don’t see this money every time you’re checking your mobile banking. It’s not an ad, I’m not getting money talking about Capital One, it’s just a cool option I found. I recommend considering Capital One 360 checking account since 1. ONE: it’s easy to open, 2. TWO: there’re no annual fees and monthly maintenance fees, 3. THREE: It’s a reliable bank.

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Видео How To Start Saving Money | Pay Yourself First канала Vladimir Mikhidenko