The challenge for each year is to PAY YOU FIRST!!
Please note: Although this challenge began in 2014, it is encouraged that you continue to PAY YOU FIRST. The consistency and discipline in behavior will guarantee an increase in saving.
Beginning January 2014, you are invited to participate with the Fabulous & Money Savvy™ community to PAY YOU FIRST.
The steps taken will include:
- Calculate 1.5% of your paycheck
- Open a separate saving account
- Create an automatic transfer from your paycheck
This is how the process would look.
Take your paycheck to see what the net income is. You would be amazed how many people never view their paystub, which is the first problem to managing their money. For this example, the net pay (what you bring home after taxes, insurance & retirement) is $675. Calculate the amount by multiplying 1.5%. Your payment to self is $10.13.
Open a saving account at your local financial institution. Ideally, it is recommended to open a saving account online so that the money isn’t easily accessible. Until you learn what an emergency is you will need an extra barrier to help with discipline.
Visit the HR department to complete a revised deposit slip to specify, 1st deposit into saving account is $10.13; 2nd deposit into checking account is remaining of paycheck. Please make sure you present the accurate routing and saving account number. If you don’t have the opportunity to create a split deposit with your company’s HR department, it is advised that you create an automatic transfer from your checking account to your saving account with your financial institution. Disclaimer: If you decide to transfer from a checking account into a saving account both accounts must be held at the same financial institution.
Instead of making excuses about which online financial institutions to look into I have provided a list for your convenience. Take the time to browse the features, minimum deposit and APR.
The steps to take to PAY YOU FIRST is easy as 1,2,3. It’s not too late to take control of your finances. It can happen beginning with you. Each of you have enough time before January 1, 2014 to engage in the three steps. More importantly, on December 31, you will feel good about yourself by putting you FIRST.
I’m Bahiyah Shabazz, your Wealth Building Expert. It is a passion of mine to financially empower and educate everyone from households to corporations. Now is the time to start thinking about your finances and actually make a change. One day, it will be too late to save. Until then, I want you to address your financial concerns. I chose January as the ideal month to begin to PAY YOU FIRST because it’s a New Month, New Year and a New Beginning. However, I encourage each of you to begin your financial journey when possible, even if it is today. Please join me and accept the challenge…Let’s go!
It’s time to increase your saving…why I decided to create the challenge!
How to use Excel to calculate a saving
Create your best life
Change your spending
The Fabulous & Money Savvy™ community is excited…