What does pay yourself first mean Meaning and Definition

Pronunciation

/ˈpeɪ jərˌsɛlf ˈfɜːrst/ 🔊

Part of Speech

Phrase

Definition

A financial principle that advises individuals to set aside a portion of their income for personal savings, investments, or debt repayment before spending on other expenses.

Examples

• She made sure to pay herself first by transferring 10% of her salary to her savings account.
• He prioritized paying himself first to build an emergency fund.

Synonyms

• Save for yourself
• Set aside for yourself

Antonyms

• Spend freely
• Live paycheck to paycheck

Additional Information

Paying yourself first is a crucial step in achieving financial stability and security. By prioritizing your own savings and investments, you can build wealth over time and reduce financial stress. This principle can be applied to various aspects of personal finance, including retirement planning, emergency funding, and debt repayment.

It’s essential to determine a suitable amount for paying yourself first, considering factors such as income, expenses, and financial goals. A common rule of thumb is to allocate at least 10% to 20% of your income towards personal savings and investments.

Implementing the pay yourself first principle can have a significant impact on your financial well-being. By making it a habit, you can develop a sense of financial discipline and responsibility, leading to a more secure and prosperous financial future.

Etymology

The phrase “pay yourself first” originated in the early 20th century, popularized by financial experts and self-help authors. The concept is based on the idea of prioritizing one’s own financial needs before addressing other expenses or obligations.

Usage Notes

The phrase “pay yourself first” is often used in the context of personal finance, budgeting, and financial planning. It can be applied to various situations, such as saving for retirement, building an emergency fund, or paying off debt.

Cultural References

The concept of paying yourself first has been referenced in various self-help books, financial articles, and media outlets. It is often cited as a key principle for achieving financial stability and security.

Idiomatic Expressions or Phrases

• Save for a rainy day
• Put aside for a nest egg

Related Words or Phrases

• Emergency fund
• Retirement savings
• Debt repayment

Collocations

• Pay yourself first before spending
• Make paying yourself first a priority

Frequency of Use

The phrase “pay yourself first” is commonly used in personal finance and financial planning contexts. Its frequency of use has increased in recent years, particularly in online articles, blogs, and social media platforms.

Common Misspellings

• Pay yourself firsts
• Pay yourself firstly
• Pay your self first