Are you trying to decide between saving money or paying down debt? Maybe you’re intimidated by trying to save a certain amount because you’ve never been “good” at saving money, or you’re tempted to pay off some of your big credit card balances or student loans with every spare dollar you have. But if you don’t have any savings for unexpected expenses, you’ll be stuck using credit cards and adding to your debt instead of paying it down.

Instead of trying to decide between paying off debt and saving, you can do both by asking yourself a different question: “How can I pay myself first?”

So many of my clients start out saving their leftover money after rent, utilities, and other expenses each month, but I want you to start paying yourself first by setting aside money each month for an emergency fund before you allocate your money anywhere else. Even if it’s just $25 a month, consistently saving any amount helps you build that muscle and lays the groundwork for you to save more over time.

In today’s episode, I’m going to help you rethink how to save money for yourself and reevaluate just how much money you need to save in an emergency fund for your specific circumstances (and it might differ from some of the classic advice you’ve heard before). This shift in your mindset will let you build confidence in the belief that you ARE someone who can save money, save consistently, and prioritize your own financial health. You’ll be able to plan how you save, find opportunities to boost your savings, and feel in control of your financial future.

In this episode, you’ll learn…

• How you can save money and pay down debt at the same time by paying yourself first [02:07 ]


• Why you should start saving money, no matter the amount, and how that habit will build confidence in your belief that you CAN save money [03:53 ]


• How you can create a year-long plan to meet your savings goals [07:10 ]


• Why $1000 is a starting point for your emergency fund and how to create personalized savings milestones for yourself and your unique circumstances [10:12 ]


• Why you should keep your emergency fund in a separate account so that you know exactly what it’s for and how it’s working for you [15:19 ]


• How you can boost your emergency fund to stay ahead of life-style creep, reduce your expenses, and be prepared for unexpected financial upheavals [16:49 ]

Tune in to this episode of Money Files to start building your emergency fund and prioritizing your financial health.

Get full show notes and the episode transcript:

https://wealthovernow.com/shift-the-way-you-think-about-saving-to-build-better-financial-habits