ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -"Pay yourself first” is a personal finance strategy of increased and consistent savings and investment while also promoting frugality. The goal is to make sure that enough income is first saved or invested before monthly expenses or discretionary purchases are made. More items

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: -Pay yourself first (PYF) means automatically setting aside money from each paycheck, as soon as you receive it, rather than waiting to see what, if anything, is left over to save at the end of the month. In other words, savings is treated as an “expense” and given a high priority.

Detailed explanation-4: -According to Investopedia, the Pay Yourself First (PYF) principle is defined as “automatically routing your specified savings contribution from each paycheck at the time it is received.

Detailed explanation-5: -Paying yourself first is considered the golden rule by financial planners. You can accomplish it by taking as little as $50 to $100 each payday and putting it into an investment vehicle, such as a savings or retirement account. More items