Pay Yourself First: The Rule That Changes Everything

When payday arrives, most of us follow a familiar routine: pay the rent or mortgage, cover bills, buy groceries, maybe treat ourselves, and if there’s anything left, we save it. 

The problem? More often than not, there’s nothing left.

This is where the principle of “paying yourself first” becomes life-changing.

What It Means to Pay Yourself First

Instead of waiting until the end of the month, you commit to saving a set percentage of your income immediately when you’re paid. Think of it as making yourself your most important bill.

When you do this consistently, you build a safety net, grow investments, and secure your future—all without relying on leftover scraps.

As Warren Buffett famously said, “Do not save what is left after spending, but spend what is left after saving.”

Why Most People Don’t Save Enough

The truth is, saving requires intention. Left unchecked, our spending expands to fill our income. That’s why people who receive raises often find themselves just as strapped as before. Without a system, saving becomes optional.

With an automatic transfer to a savings or investment account, you don’t leave it to chance. You create wealth on autopilot.

Getting Started

1. Choose a percentage. Start with 5% of your income. Work toward 10–15%.

2. Automate the process. Have funds transferred before you even see them in your checking.

3. Use multiple accounts. Divide between retirement, emergency savings, and investment goals.

4. Increase gradually. Every time your income rises, raise your savings percentage.

The Mindset Shift

Paying yourself first is more than a tactic—it’s a mindset. It says: I value my future enough

to prioritize it now. When you embrace this, you no longer live paycheck to paycheck. You move toward building real financial freedom.

Want to make paying yourself first effortless?

At Corinthian Wealth Management, we help clients set up automated systems tailored to their goals. No matter what your financial goals are, we’ll design a plan that makes building wealth second nature. Schedule your free consultation today.

Advisory services offered through Corinthian Wealth Management, Inc. a Registered Investment Advisor.

Sources

• Bach, D. (2019). The Latte Factor: Why You Don’t Have to Be Rich to Live Rich. Atria Books.

• Consumer Financial Protection Bureau. (2020, February). Perceived financial preparedness, saving habits, and financial security: Evidence from the Making Ends Meet Survey. Retrieved September 9, 2025, from https://www.consumerfinance.gov/data-research/research-reports/perceived-financial-preparedness-saving-habits-and-financial-security/

• Fidelity Investments. (2023, April 25). Pay yourself first: The simple strategy to help you save more. Retrieved September 9, 2025, from https://www.fidelity.com/viewpoints/personal-finance/pay-yourself-first

• FINRA (Financial Industry Regulatory Authority). (n.d.). Save and invest for your future. Retrieved September 9, 2025, from https://www.finra.org/investors/learn-to-invest/saving-and-investing

• Thaler, R. H., & Benartzi, S. (2004). Save More Tomorrow™: Using behavioral economics to increase employee saving. Journal of Political Economy, 112(S1), S164–S187. https://doi.org/10.1086/380085