Set up pay-yourself-first budgeting
Set up pay-yourself-first budgeting
Pay yourself first means you set aside money for savings (or debt payoff) as soon as income arrives. Whatever is left is what you spend on everything else. It's simple and keeps savings automatic.
Steps
- Create an allocation rule (savings first). Go to Income allocation (or Settings → Income allocation). Create a new rule. Add one item: your savings goal—e.g. 20% to your Savings account (or a fixed amount). Add a second item: Remainder to your Checking account (or "Living expenses"). Set this rule as Auto-allocate if you want it to run when you add income.
- Create a budget. Go to Budgets → New budget → "Split my income." Enter your income for the period and the accounts you use.
- Use your pay-yourself-first rule. When asked how to split your money, select the rule you just created. Or use the Pay yourself first template. Click "Apply to budget." You'll see your savings amount and the remainder for spending. Save the budget.
- Optional: automate. When you record income (e.g. paycheck), run Allocate income so the app creates the transfer to savings and leaves the rest in checking. Your budget and your actual split stay in sync.
You're all set. Savings happen first; you spend what's left. Check your budget anytime to see how much you've saved and how much is left for the month.
See also How to choose and set up your budgeting method, Set up the 50/30/20 budget, and Income allocation rules.
Related articles
- How to choose and set up your budgeting methodChoose the budgeting style that fits you—from simple splits to category-by-category planning—and set it up in a few steps.
- Set up the 50/30/20 budgetSet up the popular 50/30/20 rule: 50% needs, 30% wants, 20% savings and debt repayment.
- Income Allocation RulesSet up rules to allocate income to categories, accounts, or goals automatically.