If You Do This One Thing On Payday, You Can Save Way More Money
A best-selling author offered a simple but effective strategy in saving money.
David Bach is a financial adviser who wrote several books about eliminating debt, saving money and achieving massive financial success, regardless of the reader's economic status.
In his 2005 book, "The Automatic Millionaire: The Powerful One-Step Plan To Live And Finish Rich," Bach described a bank account-boosting technique called "paying yourself first," according to Business Insider.
The reason most people have trouble saving, Bach said, is because they spend their paychecks on whatever wants and needs they might have at that time and then put away whatever is left over.
"Paying yourself first" suggests viewing savings as being just as important as monthly rent.
Before spending money on bills and personal desires, Bach recommended putting a fixed amount into a savings account every month.
It is only after this amount is saved one is free to do whatever he or she pleases with the rest of that paycheck.
This strategy could be particularly useful to the nearly one in four Americans who have more credit card debt than emergency savings.
Financial experts believe one should have at least three months worth of expenses saved up since the sudden need to spend about $1,000 is not entirely unheard of.