Pay Yourself First
Prioritise savings by setting a savings target before allocating the rest to spending.
Savings First, Spending Second
The Pay Yourself First method flips traditional budgeting on its head. Instead of saving whatever is left after spending, you decide how much to save first and spend what remains.
Available on all tiers, including Free.
How It Works
1. Set Your Savings Target
Choose a percentage or fixed amount of your income to save each month. Common targets:
- 10% — a good starting point for new savers
- 15-20% — recommended for long-term wealth building
- 25%+ — aggressive saving for specific goals like a home purchase
2. Savings Becomes Non-Negotiable
Your savings target is treated like a mandatory expense — just as essential as rent or utilities. It comes off the top before any discretionary spending.
3. Spend the Rest
Your remaining income is your spending budget. How you divide it across categories is up to you.
Example
On a $4,000 monthly income with a 20% savings target:
| Amount | |
|---|---|
| Income | $4,000 |
| Savings (20%) | $800 |
| Available for spending | $3,200 |
The $3,200 is what you have for rent, groceries, transportation, entertainment, and everything else.
Why This Method Works
Traditional budgeting often leaves savings as an afterthought — you save what is left, which is often nothing. By prioritising savings:
- Savings happen consistently regardless of spending fluctuations
- Spending naturally adjusts to fit within the remaining budget
- You build wealth over time without relying on willpower at the end of the month
Tracking in NivoaFlow
NivoaFlow shows your savings target prominently at the top of your budget view. Below it, you see your remaining spending budget broken down by category. The savings target progress bar updates as you contribute to savings accounts, investments, or debt repayment.
Who It Is Best For
- People who struggle to save consistently
- Anyone with a specific savings goal (emergency fund, home down payment, retirement)
- Those who want simplicity — one big decision (savings rate) instead of many small ones
Tips
- Start small and increase — even 5% is better than nothing. Increase by 1-2% each month until you reach your target
- Automate where possible — set up automatic transfers to savings on payday
- Treat savings like rent — it is a bill you pay to your future self
Combine this method with goal tracking to stay motivated.