YouthBudget Tools

Paying Yourself First – Smart Savings Planner

Start With Yourself

Paying yourself first regularly means automatically setting aside money for savings before you pay bills or spend on wants. This simple habit builds financial security by prioritizing your future self. When you save first, you're investing in your emergency fund, retirement, and goals—making progress with every paycheck.

Your Savings Plan

Adjust the sliders to see how paying yourself first regularly turns intent into action.

Your Income

$

Pay Yourself First

%
%
%
%
Total: 100%

Emergency Fund

Automate Your Savings

Save & Share

Your Savings Plan

$75
Per Paycheck
$300
Per Month
$3,600
Per Year

Savings Allocation

Savings
● Emergency: $120
● Retirement: $120
● Other: $60

Monthly vs Yearly Savings

$300
Monthly
$3,600
Yearly

What This Means

By paying yourself first regularly at 10%, you'll save $300 monthly. This builds your emergency fund in approximately 7.5 months, while steadily growing your retirement savings and other goals.

Insights & Guidance

Emergency Funds

An emergency fund covers unexpected expenses like medical bills or job loss. Most experts recommend 3-6 months of expenses. Contributing regularly gets you to your target faster.

Retirement Contributions

Starting early leverages compound growth. Consider tax-advantaged accounts like 401(k)s or IRAs. Even small, regular contributions grow significantly over decades.

When Money Is Tight

Start with just 1-2% savings if needed. Automate transfers to make it effortless. Increase your percentage gradually—even 1% more each quarter adds up over time.

Frequently Asked Questions

What does "Paying Yourself First" mean in practice?+
It means automatically transferring a portion of each paycheck to savings before paying bills or spending on discretionary items. This ensures savings happen consistently.
How much should I save each month?+
A good starting point is 10-15% of your income, but any amount is beneficial. The key is consistency—regular saving builds the habit and compounds over time.
How big should my emergency fund be?+
Most financial experts recommend 3-6 months of essential expenses. Start with a smaller goal (like $1,000) and build up gradually.
Should I pay debt or save first?+
It's generally wise to save a small emergency fund first ($500-$1,000), then focus on high-interest debt, while continuing some retirement savings if possible.
Can I use a Roth IRA as an emergency back-up?+
Yes, Roth IRA contributions (but not earnings) can be withdrawn penalty-free. However, it's better to maintain a separate emergency fund to preserve retirement savings.
How often should I review my plan?+
Review your savings plan every 3-6 months or when your financial situation changes significantly (new job, raise, major expense).

About the Method

Paying yourself first is a foundational personal finance principle that prioritizes saving before spending. Progress matters more than perfection—even small, consistent contributions build significant savings over time. Your results will vary based on income, expenses, and goals, but the habit of regular saving creates financial resilience regardless of your starting point.

Educational Disclaimer

This tool is for educational purposes only and does not constitute financial advice. The calculations and recommendations provided are general in nature and may not suit your specific financial situation. We encourage you to consult with a qualified financial advisor for personalized recommendations tailored to your circumstances.

Last updated: 2025