To think you should save money as soon as you get paid rather than saving the leftover?

[ZanyWriter]

I’m trying to get my finances in order and have been debating whether it’s better to set aside a portion of your pay immediately - treating it like a non-negotiable expense - or to wait until you’ve covered your monthly spending and then save whatever is left over. I’ve noticed that people who pay themselves first often seem to have better control over their money, but I wonder if this approach works for everyone.

AIBU to think that automating savings is the smarter strategy or does waiting until the end of the month have its merits? What do you do?

I don’t do either. I just have a standing order from current account to savings for ££s each week. If I fall short, I just transfer some back.

But at least this makes you think about whether you really need it or whether it can wait til next month.

YANBU OP. Do a proper comprehensive budget. Work out what you can save and save it straight away.

If you can afford to save every month think of it like a bill and set up a standing order to a savings account to transfer the money on the day your bill direct debits are paid. If you choose an instant access account you will be able to transfer money back to your current account if you have an emergency. It sort of starts to feel like one of your monthly expenses and money you can’t touch.

I do both. Set amount at the start of the month and then anything leftover at the end also.

Yes, that’s how it works for me. When the initial savings acct gets over £1k, I then transfer £1k into not easy to access savings or investments with higher yields.

There's a really good budget spreadsheet on Money Saving expert. Download that and put in everything you spend. Not what you 'think' you spend or 'want' to spend in future but your actual spending from all your bank transactions over the past 3-6 months minimum. You may have to guess a bit if you use cash a lot but most people don't these days.

That will let you see where there is room to add in savings and trim spending. I had no idea I was spending £25 a week on coffees and snacks before I did that budget!

I do both, savings come out asap after payday but then if I have light spend month and current account is a bit high I transfer that over to savings. Most of my regular bills come out straight after payday so the balance goes down immediately, and I always ensure there is enough in current account to cover food shops & planned activities, then towards end of the month I add to savings if I have more left over.

I’ve tried this but then I just have to dip into what I’ve put aside

This!

Whenever I get a pay rise, I add all/most of the extra to the savings I move on payday (so I don't really see any increase - I might juggle this so that if bills have gone up, or to make it a nice round figure). Then the day before payday, I moved any leftover money into savings.

I also have separate savings that move out on payday for bills that are paid once a year.

This was advice someone gave my grandfather and I've heard it all of my life. It works for me, but whatever solution you come up with has to work for your money management style.

If you're managing to save the same amount regardless of when you 'take it out' then it doesn't matter. Some find it easy to have a routine where it's gone before you can think about spending it, some want or need to wait for a certain day to take it out. Some can't afford to save the same each month, or that frequently.
Everyone's different so just do what suits you best. X

I do both.

There's an amount which leaves my account on payday that goes into long term savings.

And the remainder at the end of the month goes into my "frivolous purchases" account. Recently drained because of DH's milestone birthday.

I don't both, I make a regular transfer to savings after payday, then at the end of the month transfer anything else I can

Both - set up a dd for a set amount to be transferred to your savings account on/around payday. Then transfer anything left at the end of the month to your savings account as well.

It depends if you want to feel 'free to spend' what's left and how implulsive you are

I'm quite impulsive so I pay myself first
My friend is very reluctant to part wind money so she just spends as little as possible and then saves what's left over. Psychologically she sees any purchase as being taken out of her savings.
She definitely has more savings than me, but she is also well known for being tight in the friendship group and puts herself through discomfort such as long walks on rainy dark cold nights instead of Ubers that I wouldn't enjoy at all

I put some aside first so I know it's saved then what's left I can spend otherwise I forget to save it

Bit of both, Have a standing order for a savings account at the beginning of the month and anything left at the end of the month gets added. Also have a couple of smaller accounts that are never ever touched.

It depends on whether you struggle to save because there isn't anything left after essential expenditure or because you spend on things you later see as unnecessary and regret. If it's the second then it makes sense to remove the money from your grasp early on. If its the first, then unless you plan on eating toast and going nowhere at the end of each month, you're going to end up taking it back anyway.

Depends. Food and rent have to be paid. If you're talking about fun money, then yes pay to savings account first.

I’ve got 3 savings pots that get paid first. Two of them pulling the money back out would be tricky. That is intentional as they are long term savings.

the third is just my regular savings. If something happens I can always use it. So why not pay into it first? If a large unanticipated expense occurs, that is what savings is for.

Yes, I do this too.

I have a standing order to move just under 1/3 of my net pay into an ISA account on the first day of every month, around the same time all my other bills are paid, whatever is left over is "disposable income"

As soon as I'm paid I transfer. Obey into my emergency fund and my holiday fund. It's usually a set amount but I do it myself incase that month I need to grt my hair cut or a big annual bill is coming out so then I adjust my amounts.

I much prefer it this way as I save money as opposed to waiting to the end.

I do both. I save a set amount at the start of the month then clear any leftovers into savings at the end.

'Pay yourself first' is the best way to save

I get paid, transfer majority of it into joint account, put money into savings. Get to the end of the month, get some money out of savings again...

We do Save the Change as well, which adds a little extra to savings.