Pay yourself 1st

This is a simple idea and not really anything new. When people start to budget most of the time “you” are the last person to be paid. Everyone else gets paid first and you settle for whatever is left. Is this the right way to look at things? Who are you working for – you or everyone else? Surely it makes sense to look after your own future prosperity rather than someone else’s?

You can try this out by aiming to save a certain amount of money each month just for you. You can do this with a little help from the government who give tax concessions on saving into your pension. Added up over time this can make a big difference.

When you start full time employment try putting 5% of your gross income straight into a pension scheme - make this the first amount to be taken from your salary rather than the last. Without even realising it you are saving money for you and for a better future. Try using our “All the small things” tips to help you along the way.

Remember by paying yourself first you do need to make sure that you can pay your bills. There is no point having a great pension pot that you can’t access for 30 years but are penniless! It is all about using your common sense and setting priorities so there is no point going into debt on credit cards whilst saving money in another account.