Pay Yourself First


Setting aside some of your earnings each month for your financial future, or ‘Paying yourself first,’ is an increasingly popular tactic for growing your own financial stability.

Here are some suggestions on how to best ‘Pay yourself first’ each month.

Make saving a priority item on your budget
If you find yourself saying: “I can’t afford to save,” then it’s time to ask some tough questions and take a hard look at your financial habits. You should be spending less than you earn. There is usually a way to lower a routine cost to make way for some saving towards your future.

This saving amount should be just as important as paying your house payment or electric bill.

Break a habit, make a habit: it gets easier once you get started
You probably want to retire but might be uncertain about future financial benefits from the government or elsewhere. You are the first person who can help secure your financial future. It is best to start saving sooner rather than later.


Keep your saving simple
Look for existing automatic ways to save. This automation removes the temptation to skip any month’s contribution and reduces the risk that you’ll spend the funds before you saved them. Some common examples include:

Company retirement plan (401K)
401Ks include automatic payroll deductions so you can set a scheduled amount once and then let it grow. It’s set aside for your benefit for the future. Plus, this has innate tax benefits.

Individual Retirement Account (IRA)
You can schedule as little as $5 a month in monthly/bi-monthly withdrawals from your checking account into a Horizon Bank IRA Savings account. Schedule these deductions automatically and you will not have to be as disciplined to remember each month. Like 401Ks, IRAs offer great tax benefits.

Holiday Club Account
Horizon Bank’s Holiday Club Account creates a good habit when scheduling contributions from checking into your Holiday Club account. This creates & puts a plan in place for extra expenses incurred during the holidays without having to impact your overall financial goals. Usually this account does pay some interest.

Resist Temptations!
As with any life change you’re making, it’s important to be honest with yourself. It’s too easy once you skip or miss a month of saving to allow that to become a cycle. Stay focused on your ultimate goal to create financial freedom or future financial security.

Don’t put off until tomorrow what you can do today! Start now!

“Pay Yourself First” is considered the golden rule of personal finance. Contact a local Horizon Bank branch to find an advisor to help you get started.