Smart money management for Everyone
The First Bill You Pay Every Month: Pay Your Future Self First
It's payday!!! Your account looks healthy, your shoulders feel a little lighter, and for a brief moment, everything seems possible. You settle a few bills, you handle the necessities. Then, almost without thinking, the money starts to slip away. A quick trip to the market, a new pair of shoes for the growing child, fuel for the car, a friend’s birthday celebration. Before you know it, that feeling is gone, replaced by the familiar wait for the next alert. The cycle continues. The future? It feels like a distant country you’ll visit someday, but you never quite book the ticket.
What if you could break that cycle? Not through some complex, foreign financial strategy that requires a dictionary to understand, but by applying a simple, timeless principle, one your grandparents probably understood instinctively. It’s called Pay Your Future Self First. It’s not about deprivation; it’s about prioritization. And it’s the most powerful financial shift you will ever make.
What On Earth Does "Pay Your Future Self First" Actually Mean?
This idea isn’t a complicated formula. It’s a mindset.
Think about it: when you get your income, who do you pay first? The landlord? The electricity company? The supermarket? The taxi driver? Of course, you do. These are urgent, non-negotiable demands. They shout the loudest. Your future self, however, is quiet and patient. It doesn’t send you disconnection notices or threaten to evict you. It just waits, hoping you’ll remember. And because it’s silent, it often gets nothing. It gets the leftovers, the scraps, if there are any.
Paying your future self first flips this entire script. It means the moment money lands in your hands, before you even think about those other obligations, you set aside a portion for the most important person in your financial life: you. Not the you of today, but the you of next year, five years from now, and the you who wants to retire in peace.
It’s like preparing a plate of food for a large family. Instead of letting everyone rush the pot and hoping there’s something left for you, you calmly and deliberately serve your own plate first. Then, you distribute the rest. It sounds almost selfish, doesn’t? But it’s not. It’s strategic. Because if you don’t ensure you’re fed, you’ll have no strength to take care of anyone else. Securing your future is what gives you the long-term capacity to provide for your loved ones consistently.
The Psychology Behind Paying Yourself
Why is this principle so effective? It works with your human nature, not against it.
We’re all wired for instant gratification. Spending money now feels good. Saving what’s left over feels like a chore. It relies on willpower, which is a finite resource. By the time you’ve dealt with all your expenses, your willpower is depleted. The temptation to just enjoy the little that’s left is overwhelming.
Making your future self the first and most important bill you pay completely bypasses this struggle. The money is moved automatically, out of sight and out of mind, before you even have a chance to think about spending it. You can’t miss what you never really saw. You’re then forced to live on and manage what remains. It forces creativity and discipline with the rest, rather than hoping for discipline with the leftovers.
A study often cited in behavioural economics illustrates this perfectly. Researchers found that when workers were automatically enrolled in a savings plan (they had to opt-out instead of opt-in), participation rates skyrocketed. People were far more likely to save for their future when the decision was made for them upfront and the process was automatic. They were paying their future selves first without even having to lift a finger. The path of least resistance became the path to wealth.
How to Actually Do It
How do you put this into practice without getting a headache? It’s simpler than you think.
Decide on the Percentage. This is the most personal step. It doesn’t have to be a scary figure. Don’t start with 50% and set yourself up for failure. Start small and be consistent. Can you start with 5% of your income? Even 2% is a start. The goal is to build the habit. A cousin of mine started with just 2%. It felt almost insignificant, but after a year, he was shocked to see the tangible amount that had accumulated without any pain. He then felt motivated to increase it to 5%, then 7%.
Automate, Automate, Automate. This is the magic key. You are a busy person. You will forget. Don’t rely on your memory. The moment you receive any income, the very first transaction should be an automatic transfer of your chosen percentage to a separate account specifically for your future. This account is not for emergencies, not for a vacation next December, it is strictly for your long-term future. Talk to your bank about setting up a standing order. Use a mobile app that allows you to schedule transfers for the day after you get paid. Make it impossible to skip.
Forget the Money Exists. This is the final, crucial step. Once that money is transferred, consider it gone. It is not yours to spend. It belongs to the older, wiser, and hopefully more relaxed version of you. Don’t check that account every day. Let it grow in peace. Out of sight, truly out of mind.
What should this separate account be? It could be a simple savings account to start. As the amount grows, you can explore other vehicles that help your money grow faster than inflation, which is silently eating away at cash under the mattress. But that’s a conversation for another day. The first and most important victory is consistently moving the money.
The Ripple Effect: What Happens When You Become Your Own Priority
When you start to Pay Your Future Self First, something fascinating begins to happen beyond just the numbers in your account.
You start to feel a profound sense of security. Money anxiety begins to loosen its grip. You walk with a different kind of confidence, knowing you are actively building a foundation for yourself. You’re no longer just reacting to life; you’re deliberately building it.
You also become smarter with the remaining money. When you have a slightly smaller amount to work with for the month, you naturally become more intentional. You start to distinguish between wants and needs more clearly. You find smarter ways to stretch your money, not because you’re forced to by poverty, but because you’re empowered by a plan. You’re making your money work for you, not the other way around.
A friend shared her story with me. She felt she was in a constant financial rat race. She decided to pay her future self first, automatically moving 10% of her freelance earnings. The first month was tight. She had to say no to a few outings. But she did it. The second month was easier. By the sixth month, she hadn’t just built a growing savings pot; she had become a master at managing her cash flow. She was less stressed, more in control, and finally felt like she was getting ahead instead of just getting by.
You May Ask
How much should I actually pay my future self?
There’s no single answer. A common rule is to aim for 20%, but that can feel impossible when you’re starting. Please, don’t let that number intimidate you. The best amount is the one you can stick to without giving up. Start with what seems too easy, 3%, 5%. The habit of consistency is infinitely more valuable than a high percentage you abandon after two months. You can always increase it later when you get a raise or find ways to reduce other expenses.
What if an emergency happens and I need that money?
This is a great question and why your emergency fund and your future self fund are slightly different things. Ideally, you should be building a small emergency fund alongside paying your future self. Your future self fund is for long-term goals: a house, your children's education, your retirement. Your emergency fund is for unexpected medical bills or car repairs. If you haven’t built an emergency fund yet and a true crisis hits, then yes, that future self fund provides a cushion. That’s okay. It’s there to give you options and prevent you from going into debt. The goal is to eventually have both.
Isn't this selfish? I have so many people depending on me right now.
This feels like the biggest hurdle for many. But let’s reframe it. Is it selfish to put on your own oxygen mask on a plane before helping your child? No. It’s necessary. If you pass out, you can’t help anyone. Securing your own future is the ultimate act of responsibility towards your dependents. It means you won’t become a financial burden to them later. It means you’ll be able to help them with their own futures from a position of strength. It is the opposite of selfish; it is sustainably generous.
Isn't paying myself like going out, buying those nice shoes or what do you mean?
When we say "Pay Your Future Self First," we are not talking about spending money on treats for yourself today. Those new shoes? That's paying your present self. And, there's a time and a place for that, after your responsibilities are sorted.
Think of it this way: paying your present self is like giving a man a fish. He eats for a day. It feels good right now, but the feeling is temporary.
Paying your future self is like teaching that same man how to fish. It’s an investment that ensures he can eat for a lifetime. You're not spending the money; you're strategically moving it to work for the "you" of tomorrow, next year, and twenty years from now.
You're building your own personal safety net and wealth generator. The money isn't disappearing into a pair of shoes you'll wear out. It's being transferred to a place where it can grow, sit safely, and be there for the big things:
The school fees for your children.
The down payment for a home.
The capital to start that business you dream about.
A nest egg so that when you're older and can't work as hard, you can still live with dignity.
It’s the opposite of instant gratification. It’s delayed gratification on a massive scale. It’s deciding that the version of you that exists in the future is just as important, no, more important, than the impulse you have right now.
So, no. Buying those nice shoes is spending. Paying Your Future Self First is saving and investing. It's the most important bill you'll ever pay because it's payable to you.
Paying your future self first isn’t a get-rich-quick scheme. It’s a get-rich-slowly-and-surely system. It’s a quiet promise you make to yourself every single time you earn something. It’s the acknowledgment that you are worth investing in.
That future you is counting on the present you. They’re dreaming of less stress, more freedom, and the ability to enjoy the fruits of a lifetime of labour. They’re trusting you to remember them amidst the noise and demands of today. So, the next time that payment alert comes in, pause for just a second. And make the first, most important payment of the month. To you.
