Pay Yourself First with Auto Transfers
When learning to manage money and build savings, one often comes across the phrase “Pay Yourself First.” But what does this phrase mean?
Pay Yourself First means that when you receive a paycheck, tax return, or other income, you immediately put some portion of it into savings, paying yourself first, before you start paying bills or using the remaining funds.
You’ll need to determine how much you can save, but saving in this routine way means you’ll continually make progress toward your savings goal. Even small amounts add up, and it’s important to start as soon as you can to begin building savings, especially for an Emergency Fund.
One way to automate the Pay Yourself First process is to set up recurring automated transfers from your Checking account to your Savings account. You can set up these transfers using one or more of these methods:
- You can schedule recurring transfers yourself using Online Banking. For example, you could schedule transfers to take place on the same day that your paycheck direct deposit happens, and the money will automatically transfer from your Checking account to your Savings account.
- You can ask your Human Resources department to directly deposit a portion of your paycheck right into your Savings account.
- You can call us and we can help you set up auto transfers
Paying yourself first in this automated way is an easy set-it-and-forget-it method that ensures your savings balance will continue to steadily grow. If you need help setting up an auto transfer between your Checking and your Savings account, Contact Us for help.