im in jail for 7 years

3 hots and a cot for 365 X 7. That'll save you a lot on food and rent!

Isn't using the calculator cheating?

You are using the calculator for yourself. This is not an examination of your personal arithmetical skills. Using the calculator is probably best.

im in jail for 7 years

That's very sad. While you're on the inside, I hope that you can take advantage of things like "college behind bars" and other opportunities for learning. Stay safe, man. It can be dangerous behind bars.

I'm a bit confused. When I want to pay myself first, is it a saving different than the 20% saved from 50/30/20 rule? The way I understood it is that this kind of saving is for personal goals, not an emergency fund, is that right?

Let's do this slowly. Start from the amount you earn each month. Let's say that your local currency is called the Zloby, and you get paid 50,000 of these every month. Your housing, insurance, transportation, debt-service, food and clothing should total no more than 25,000 every month. You should save 10,000 every month. When your emergency fund is full, you should save those 10,000 anyway, because saving is a good thing. That leaves you 15,000 every month to do things like take your girlfriend to movies or go on ski holidays to Chile.

What about inflation if lets say you save 1-2years to save up money for something?

Inflation is part of the world in which we live. Given that prices will rise, you may find it taking more time to save for that thing you want. That's just the way it is.

how can you make big money?

You can "make big money" in the following way. 1) Get skilled (this may take time, study, dedication and incurring some debt through taking out educational loans). 2) Focus on a field where "big money" may be earned (so, stay away from human services or social sciences. Don't even think about the arts.) 3) Get a job in a place where you have access to a research laboratory. 4) Delay marriage and family commitments. Even forsake the idea of having children. 5) Become the owner of a business, wherein you can underpay the people who work for you while you reap the rewards of their labor. 6) Take advantage of tax avoidance schemes. In the end, you may well "make big money", but you will have sold your soul to some kind of devil or another, even if you don't believe in devils.

What is the best way to get paid?

The best way to get paid is to get a job with an employer who will pay you.

Main content

Pay yourself first

Google Classroom

Learn how to structure your paychecks around paying yourself first.

You might have heard people say "you should always try and pay yourself first". The phrase "pay yourself first" generally refers to the idea that when you receive income, you should prioritize saving money for yourself before paying bills or other expenses.

So, let's walk through how you pay yourself first.

Paying yourself first

How you pay yourself first will depend on how often you get paid. Some people get paid every week, others every other week, some twice per month, and others once per month.

Pay period	Example	Number of pay periods per year
weekly	every Friday	52
biweekly	every other Friday	26
semi-monthly	every 1st and 15th of the month	24
monthly	every 1st of the month	12

Refer to the table above to see how many pay periods you have in a year. This will help you figure out the amount you need to save each time you receive a paycheck.

Example

For example, let's say you want to save

$ 624

for a new laptop:

If you're paid weekly, you need to save $$ 12$ ‍ each time you get paid.
If you're paid biweekly, you need to save $$ 24$ ‍ with each paycheck.
If you're paid semi-monthly, you need to save $$ 26$ ‍ each time you get paid.
And, if you're paid monthly, you need to save $$ 52$ ‍ each paycheck.

This method works for any savings goal. Let's say you want to save

$ 1,300

for a vacation and you are paid every two weeks. You would divide

$ 1,300

26

pay periods to get

$ 50

per paycheck. This amount will then be put aside into savings and when the vacation time finally arrives, you will have all the money save up - no stress, no worry.

By syncing your savings with your paycheck, you are able to save money before you get the chance to spend it, thus, pay yourself first.

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im gonna get a blackhole badge
Posted 8 months ago. Direct link to im gonna get a blackhole badge's post “What would happen if i we...”
What would happen if i were to pay myself last?
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(65 votes)
Answer
big man no cap
Posted 8 months ago. Direct link to big man no cap's post “im in jail for 7 years”
im in jail for 7 years
Button navigates to signup pageComment on big man no cap's post “im in jail for 7 years”
(16 votes)
Answer
- David Alexander
  Posted 8 months ago. Direct link to David Alexander's post “3 hots and a cot for 365 ...”
  3 hots and a cot for 365 X 7. That'll save you a lot on food and rent!
  Comment on David Alexander's post “3 hots and a cot for 365 ...”
  (32 votes)
cheneugpas
Posted 9 months ago. Direct link to cheneugpas's post “Isn't using the calculato...”
Isn't using the calculator cheating?
Button navigates to signup pageComment on cheneugpas's post “Isn't using the calculato...”
(4 votes)
Answer
- David Alexander
  Posted 9 months ago. Direct link to David Alexander's post “You are using the calcula...”
  You are using the calculator for yourself. This is not an examination of your personal arithmetical skills. Using the calculator is probably best.
  Button navigates to signup page
  (32 votes)
samuell1423
Posted a year ago. Direct link to samuell1423's post “what is bi”
what is bi
Button navigates to signup pageComment on samuell1423's post “what is bi”
(8 votes)
Answer
- Wasila Islam
  Posted a year ago. Direct link to Wasila Islam's post “it is haram”
  it is haram
  Comment on Wasila Islam's post “it is haram”
  (6 votes)
5201kadensumler
Posted a year ago. Direct link to 5201kadensumler's post “doesn't bi mean two?”
doesn't bi mean two?
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Answer
- madeline.schmit
  Posted a year ago. Direct link to madeline.schmit's post “yes, bi means 2”
  yes, bi means 2
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  (9 votes)
williams_m03
Posted a year ago. Direct link to williams_m03's post “What is the best way to g...”
What is the best way to get paid?
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(1 vote)
Answer
- David Alexander
  Posted a year ago. Direct link to David Alexander's post “The best way to get paid ...”
  The best way to get paid is to get a job with an employer who will pay you.
  Comment on David Alexander's post “The best way to get paid ...”
  (17 votes)
mansoor.alhalmi
Posted 6 months ago. Direct link to mansoor.alhalmi's post “im in jail for 7 years”
im in jail for 7 years
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(3 votes)
Answer
- David Alexander
  Posted 6 months ago. Direct link to David Alexander's post “That's very sad. While yo...”
  That's very sad. While you're on the inside, I hope that you can take advantage of things like "college behind bars" and other opportunities for learning. Stay safe, man. It can be dangerous behind bars.
  Button navigates to signup page
  (7 votes)
JamilJ
Posted 5 months ago. Direct link to JamilJ's post “how can you make big mone...”
how can you make big money?
Button navigates to signup pageComment on JamilJ's post “how can you make big mone...”
(2 votes)
Answer
- David Alexander
  Posted 5 months ago. Direct link to David Alexander's post “You can "make big money" ...”
  You can "make big money" in the following way.
  
  1) Get skilled (this may take time, study, dedication and incurring some debt through taking out educational loans).
  2) Focus on a field where "big money" may be earned (so, stay away from human services or social sciences. Don't even think about the arts.)
  3) Get a job in a place where you have access to a research laboratory.
  4) Delay marriage and family commitments. Even forsake the idea of having children.
  5) Become the owner of a business, wherein you can underpay the people who work for you while you reap the rewards of their labor.
  6) Take advantage of tax avoidance schemes.
  
  In the end, you may well "make big money", but you will have sold your soul to some kind of devil or another, even if you don't believe in devils.
  Comment on David Alexander's post “You can "make big money" ...”
  (8 votes)
mohanadsyria40
Posted 6 months ago. Direct link to mohanadsyria40's post “I'm a bit confused. When ...”
I'm a bit confused. When I want to pay myself first, is it a saving different than the 20% saved from 50/30/20 rule? The way I understood it is that this kind of saving is for personal goals, not an emergency fund, is that right?
Button navigates to signup pageButton navigates to signup page
(3 votes)
Answer
- David Alexander
  Posted 6 months ago. Direct link to David Alexander's post “Let's do this slowly. Sta...”
  Let's do this slowly.
  Start from the amount you earn each month. Let's say that your local currency is called the Zloby, and you get paid 50,000 of these every month.
  
  Your housing, insurance, transportation, debt-service, food and clothing should total no more than 25,000 every month. You should save 10,000 every month. When your emergency fund is full, you should save those 10,000 anyway, because saving is a good thing.
  That leaves you 15,000 every month to do things like take your girlfriend to movies or go on ski holidays to Chile.
  Comment on David Alexander's post “Let's do this slowly. Sta...”
  (5 votes)
fastlane14062023
Posted 9 months ago. Direct link to fastlane14062023's post “What about inflation if l...”
What about inflation if lets say you save 1-2years to save up money for something?
Button navigates to signup pageButton navigates to signup page
(3 votes)
Answer
- David Alexander
  Posted 9 months ago. Direct link to David Alexander's post “Inflation is part of the ...”
  Inflation is part of the world in which we live. Given that prices will rise, you may find it taking more time to save for that thing you want. That's just the way it is.
  Comment on David Alexander's post “Inflation is part of the ...”
  (3 votes)

Financial Literacy

Course: Financial Literacy > Unit 2

Paying yourself first

Example

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