Pay Yourself First

The Simple Way to Save Money

Do you pay yourself first?

Some say this is the key to saving money – but what does it mean, to ‘Pay Yourself First?’. This is a simple savings technique that has been proven help people to change their behaviour and start building a savings habit.

It involves putting a certain amount of every pay day, straight into a savings account before you pay any other bills. Typically, a recommended amount is 10% of your net pay – however if you can afford more you may want to consider the 50, 30, 20 rule.

50-30-20 Rule

The 50, 30, 20 Rule is a savings strategy that helps you effectively save by dividing your take-home money into these three parts — fixed expenses (50%), flexible expenses (30%) and financial goals (20%).

The 20% for your financial goals are essentially your savings, such as emergency or savings funds. This is key to helping you prepare for your financial future.

Saving straight from your pay

Payroll deduction is a great way to ensure you “Pay yourself first”. Most organisations have payroll deduction savings schemes – to help their employees save.

At Serve and Protect CU, we work with over 30 Police Forces, the Ministry of Defence and HM Prison & Probation Service to help employees save and borrow with repayments straight from their salary.

Why not learn more about how you can start saving with Serve and Protect CU today via:

  • The information provided in this article is for guidance and educational purposes only. Police Credit Union Ltd. does not offer regulated financial advice. Please seek independent financial advice.

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