“Pay Yourself First”: Money Habits for Stronger Finances
The thought of living on what’s left after paying your bills should be modified to living on what’s left after paying yourself and your bills. It’s a matter of investing in your financial security. Making sure a portion of each paycheck goes into your savings account is a wise choice you’ll appreciate in the future.
Credit unions are among the first financial organizations to provide direct deposit. In the early days of Call Federal, Philip Morris began providing payroll deduction, which enabled many of our members to begin their first savings accounts. At that time, paychecks were generally cashed. Most employees left the teller line with good intentions to save a little, but before they knew it, the earnings were gone. With the start of direct deposit, payroll deduction was a new possibility, where a small amount—even as little as $1.00/week—could be regularly withdrawn from individual paychecks and sent to the credit union for deposit in the member’s savings account. In this way, our members began to discover a new path to financial stability through regular deposits into a savings account.
Now, just as then, the purpose of a savings account varies from member to member. Whether it is a vehicle to have a little nest egg for vacations, family emergencies, unexpected home or automobile expenses, or just a path to building some security for the future, these accounts are valuable for stability and peace of mind. If you leave this money alone and keep up the routine deposits, the balance continues to build gradually, which over time really makes a difference. The habit is just as relevant today as it was 50 years ago.
Keep paying yourself first, counting yourself and your monetary health as one of your monthly essentials. Continue setting aside a preset amount from all income, and see how accumulating a savings account is not painful if done in a routine way. Your financial security needs to be financed with regular payments the same as any other bills or contractual debt. If we used the phrase “save a little for a rainy day,” everyone would understand that value based upon the local weather this year. But rain or shine, saving just makes sense—and cents!
At Call Federal Credit Union, our team is ready to help with any questions you might have. Contact us today!
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