Rich PillockPay yourself first: the payday rule that actually works
In 1926 a man called George S. Clason wrote a little book called The Richest Man in Babylon. Its first rule is simple: of everything you earn, keep a part for yourself before you spend anything else.
A hundred years later, it's still the best money advice going. I know this because I've ignored it every month.
Why it works
If you save whatever's left at the end of the month, you'll save nothing, because there's never anything left. If you move the money on payday, before you've had a chance to spend it, you spend what's left instead. Same pay, different order.
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What you actually do on Monday
- Pick a number you won't miss. It doesn't have to be big. A small amount you never skip beats a big amount you give up on.
- Set up a standing order to a separate savings account for the morning after payday, so it happens without you deciding.
- Make it slightly awkward to get back. A different bank, or an account without a card, helps.
- Raise it when your pay rises, before you get used to the extra.
Ric's verdict: The richest man in Babylon paid himself first. I paid the champagne man first. Check the photos above to see how that went.