Pay Yourself First: The Urgency of Saving Before Spending

Devin Halim Wijaya7 August 2025

0 25 4 minutes read

One idea that is particularly powerful and straightforward in the field of personal finance is “pay yourself first”. This strategy promotes putting money aside for savings as soon as you receive your paycheck—before you spend a dime. You save first and then live off of whats left over after expenses. It reverses the traditional budgeting approach and puts your financial future ahead of immediate consumption. This is a mentality change rather than merely a financial strategy. Since they view saving as optional or secondary many people find it difficult to accumulate savings. Nevertheless you start establishing discipline stability and long-term security as soon as you make saving your top priority. You start thinking about your future and stop depending on leftovers.

Money management is made easier with this reverse budgeting approach. You can automate savings and then manage the remaining funds for bills necessities and leisure instead of keeping track of every dollar spent. This approach is in line with the lifestyles of contemporary workers particularly those who appreciate simplicity while still seeking to maintain financial stability. From creating an emergency fund to retirement planning it works with all income levels and financial objectives. Once saving is a given your spending will inevitably adapt to meet it. Even if you cut back on non-essentials you still get peace of mind and financial momentum which are more valuable. Paying yourself first also helps you avoid the inflation of your lifestyle. Your progress remains constant despite changes in the outside world because your savings increase in tandem with your income.

Also read: Smart Money Management Tips For Homemakers

Saving is a Form of Financial and Spiritual Discipline

Prioritizing savings is a sign of self-control and responsibility in addition to being a wise financial practice. Managing ones finances is a moral requirement in Islam. The Qur’an advises: “And do not spend wastefully. Indeed, the wasteful are brothers of the devils.” (Surah Al-Isra: 26–27). This advice reminds us that unplanned excessive spending is not only foolish but also detrimental to ones spiritual well-being. Respecting what you have and realizing that money is a trust rather than just a means of indulgence are two things that come with saving. Saving money is a means of taking care of your future your family and yourself. It enables you to help others stay ready for difficult times and stay clear of dangerous debts that can undermine your wealth and general well-being.

Although many people think they don’t make enough money to save, the discipline of saving is more about consistency than income. The habit is what counts not how much money you put aside—$5 or $500. This exercise gradually boosts self-esteem and creates new opportunities. The days of living paycheck to paycheck are over. You cease acting frantically in response to crises. You begin making plans rather than merely getting by. The more persistent you are the more your money starts to work for you rather than against you.

Also read: Islamic Perspective on Saving: Between Virtue and Excess

How to Apply the Pay Yourself First Method

Start by deciding on a set amount or percentage of your income that will be transferred automatically to an investment or savings account each time you receive your paycheck in order to implement this strategy successfully. This procedure can be automated to eliminate temptation and guarantee consistency. Think of it as an ongoing bill that you owe to your future self. After you have saved money you use the rest of your income to pay for necessities and extracurricular activities. You will eventually modify your way of life to fit what remains and you wont feel deprived because the most crucial issue has already been taken care of.

This methods sustainability and simplicity are its main advantages. Neither perfection nor continual recalculation are necessary. It gives you flexibility and freedom while allowing you to concentrate on living your life. This can be tailored to any objective such as retirement education funding emergency savings or a down payment and you can track your progress over time with each pay period. Youve already secured enough to save so youre not wishing for more. This alters your perspective on money and the future which is a significant change.

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Creating a Future by Being Consistent

The biggest advantage of paying yourself first is not only the financial savings but also the mental shift. You come to see yourself as a person who prioritizes plans and guards. You start making stability instead of waiting for it. And you wont start from scratch when life becomes unpredictable which it will. Youve been getting ready the entire time. Saying no to pressure and yes to opportunities is made possible by this habit. Because you understand that your long-term well-being is more important than short-term satisfaction it helps you avoid making poor financial decisions.

This proactive approach is further supported by the Quran in Surah Ar-Rad: “Indeed, Allah will not change the condition of a people until they change what is in themselves.” (Surah Ar-Ra’d: 11). Change starts with ones own behavior routines and self-control. We must work hard and make wise decisions to achieve financial freedom it does not just happen to us. Making the first payment to yourself is a tiny action that has enormous repercussions. It creates the foundation for a future in which you are in control confident and have options.

Also read: Financial Planning in Times of Crisis