Vanguard | How to Create a Pay Yourself First Budget

To achieve our financial goals, we need to know where our money is going. This is why having a budget is so important. And what's even more important is to find a budget that matches your personality.

The pay yourself first method is ideal for people who don’t want to track every single expense in their budget and want to increase how much they are saving. It’s also called reverse budgeting because it really doesn’t feel like budgeting at all.

This video will help you decide if the pay yourself first budget works for you.

At Vanguard, no matter where you are in your financial journey, we are here to help you find your next best financial actions!

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0:00 – Intro
0:08 – The pay yourself first method of budgeting
0:27 – Step 1: Determine your financial goals
0:43 – Step 2: Pay yourself first
1:04 – Step 3: Use the rest of your income to pay for your expenses
1:27 – Behavioral science tip
1:54 – The bottom line
2:10 – Outro
2:28 – Download Vanguard’s guide to financial wellness