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Pay Yourself First!

May 16, 2023

Each month, you settle down to pay bills. You pay your mortgage lender. You pay the electric company. You pay the trash collector. But do you pay yourself? One of the most basic tenets of sound investing involves the simple habit of “paying yourself first” – in other words, making your first payment of each month a deposit into your savings account. Welcome to our blog, where we are working to provide everyone possible with information from a financial perspective, that may help them understand their next steps better. As always, our blog is written to inform, not to instruct. So take the time to Schedule a FIT Meeting with us at any time by clicking that link and booking directly with the advisor. Always work with a professional before making important financial decisions. 


The saving patterns of Americans vary widely. And too often, short-term economic trends can interrupt long-term savings programs. For example, the U.S. Personal Savings Rate jumped from 3.5% to nearly 8% in May 2008 during the housing and banking crisis. It then rose and fell sporadically as the economic environment appeared to stabilize. It peaked in December 2012 at 12%. As of 2021, the average rate has once again varied widely between about 15% to 28%, largely due to the COVID-19 pandemic.1


Anyone who’s ever managed their own finances knows that saving can be a challenge. There seems to be an endless stream of expenses that demand a piece of each month’s paycheck. Herein lies the genius of paying yourself first: you get the cream at the top of the bucket, and not the leftovers at the bottom.


The trick is to prioritize. Make it a point to put your future first. At first, saving may mean a small lifestyle change. But most individuals want to see their net worth increase steadily. For them, finding ways to save becomes more of a long-term commitment than a short-term challenge.


What will you do with the money you save?


That’s a conversation between you and your advisor! L2 Advisors utilizes a three step process of Discover, Design, Deploy within our proprietary process. Once we get to know you and your needs, wants and wishes (Discovery), we can look at a financial plan that aligns to your needs (Design), and then put our knowledge to work for you (Deploy) with a panoramic financial plan. 


In the pursuit of growing wealth, sound habits can be your most valuable asset. Develop the habit of “paying yourself first” today. The sooner you begin, the more potential your savings may have to grow. If you're looking for more topics about saving, check out our blog post on saving to invest (click here). Be sure to engage with us on our social media and share content with anyone that may benefit from reading it. We know our clients tackle investing with a larger smile on their face when they're confident and informed! Not a client? You can Schedule a FIT Meetingwith us at any time by clicking that link and booking directly with the advisor



  1. Federal Reserve Bank of St. Louis, 2021