Why You Should Pay Yourself First Instead of Budgeting

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If you live paycheck-to-paycheck with no savings and a lot of consumer debt, you may need to start with a strict budget for a while.

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The pay yourself first approach to budgeting is less precise. With anything less specific, it does leave more room for error.

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When You Don’t Have to Use a Traditional Budget

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The Alternative: The “Pay Yourself First” or “Anti-Budget” Method

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Step 1: Track Your Spending

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Step 2: Automate Your Monthly Payments

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This will be the key to success if you use this approach. Of course, you won’t get this perfect at first, but getting started is the key.

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This method will require that you have a gap in your income and spending.

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When you first start, you may not have much if anything in the “saving/investing” or “spend the rest” category.

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Swipe Up To Learn More

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