ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Introduction. Pay yourself first is a popular phrase in personal finance and retirement-planning literature. It is also an investor mentality that means automatically routing a specified savings contribution from each paycheck at the time it is received.

Detailed explanation-2: -When you pay yourself first, you pay yourself (usually via automatic savings) before you do any other spending. In other words, you are prioritizing your long-term financial well-being.

Detailed explanation-3: -With a pay-yourself-first savings strategy, your savings always comes first. This means dipping into savings is almost entirely off-limits. By following this strategy, you would rather pay a bill a month late than take money from your savings to pay it off. This is also why the strategy works.

Detailed explanation-4: -paying yourself first means: putting some of your income into a savings account before paying bills, buying personal items before paying bills. Which of the following are ways to help you save money?

Detailed explanation-5: -Prioritize. Make a list of all the things you want to save for and how much you’ll need for each purpose. Categorize. Once you’ve listed your goals, it’s time to sort them. Invest. After identifying your categories, you can start putting money in them. Review.