Most people treat themselves to a fancy dinner or a new watch with their first paycheck. I treated myself to 25 shares of my favorite index fund.
The path to building wealth isn’t always glamorous but it sure is fulfilling. I just finished transferring a good chunk of my first paycheck from my checking account to savings and investments. This is what I call paying myself first.
Everything I did with my first paycheck
Before my direct deposit even hit the bank, part of my pay was taken out for my 401(k) where I get an employer match (aka free money!).
Next, I sent a good chunk to my Roth IRA where I treated myself to 25 shares of my favorite total market index fund.
Lastly, I put away a little something something into my international travel sinking fund! I dream of the day I can take the Europe trip that Covid so rudely cancelled on me.
Pay Yourself First!
Paying yourself first isn’t the easiest thing to do if you’re not used to it. I definitely hesitated and almost let the money sit in checking for a couple more weeks, but I reviewed my budget, verified that I have sufficient funds to cover all expenses, and took the leap!
If you’re not used to transferring money out of checking on each payday, try setting a goal to either send money to an emergency fund, sinking fund, investment, or loan payment next time you get paid! I promise you it’s more fulfilling than any fancy dinner or new watch would ever be!