Paying yourself First

What does "paying yourself first" mean in personal finance?

• Saving a portion of your income before spending on anything else.

• Borrowing money from yourself before using credit cards.

• Spending on your needs and wants before paying your bills.

What is a good way to start paying yourself first?

• Transfer money into your savings account the same day you get paid.

• Asking your boss to pay you on the first of every month.

• Wait until all your wants and needs are paid for, and transfer the rest of the money into savings.

Which of the following is an example of paying yourself first?

• Spending all your money on clothes, or movies and saving the change.

• Lending money to your friends or siblings and charging them interest.

• Putting $25 of your earnings into a savings account every time you get paid.

You are currently getting paid monthly. You want to start paying yourself first and have opened a savings account. You want your savings transfers to happen the same day as your paycheck.

Which option should you select for transfers?

• Every week

• Every other week

• Once per month, on the same day as your paycheck

You are currently getting bi-weekly. You want to start paying yourself first and have opened a savings account. You want your savings transfers to happen every time you get paid.

Which transfer option best matches your pay?

• Every week

• Every other week

• Once per month, on the same day as your paycheck

You are currently getting paid every 1st and 15th of the month. You want to start paying yourself first and have opened a savings account. You want your savings transfers to happen every time you get paid.

Which transfer option best matches your pay?

• Every week

• Semi-monthly

• Once per month, on the same day as your paycheck

You are paid weekly.

How many times do you get paid per year?

Mathematical Equivalence

ON

You are paid biweekly.

How many times do you get paid per year?

Mathematical Equivalence

ON

You are paid semi-monthly.

How many times do you get paid per year?

Mathematical Equivalence

ON

Alex has one year to save up for a new TV. The new TV costs $884. He wants to save the minimum amount out of each of his weekly paychecks.

If Alex saves the same amount each paycheck, how much does he need to save in order to meet his goal?

Mathematical Equivalence

ON