Pay Yourself First : A Golden Rule

Saving is almost always deemed as a difficult task. By the time you pay off your bills you may have nothing left at the end of the month to save. Then you make a vow that the next month would be different. And somehow, it never is. It makes you feel crappy to see that you’re in an endless, vicious cycle.

At this point, I would suggest trying to track your expenses and set up a budget and then start PAYING YOURSELF FIRST. 

In other words, before you pay your bills, before you buy groceries, before you do anything else, set aside a portion of your income to save. 

The first bill you pay each month should be to yourself. This habit, developed early, can truly help you build tremendous wealth. Then, pay your other bills as usual.

Remember, that the first “bill” you pay when you get paid is yourself. Your savings is also a bill that you have to pay, under no circumstances should you stop the contributions or make a withdrawal. Once you miss one payment or start withdrawing the whole plan could fall apart.

Simply, this is what they call PAYING YOURSELF FIRST.

It means to automatically route your specified savings contribution from each paycheck at the time it is received. Decide on an amount you can commit to for at least six months and immediately pay that "bill" by depositing the money into your mutual fund, insurance, retirement accounts or brokerage(if you have any). The money is aimed for you to reach your financial goals. Hence, you must do this even if you cannot afford it!

Regular, consistent savings contributions go a long way toward building a long-term nest egg, and some financial professionals even go so far as to call "pay yourself first" the golden rule of personal finance.