Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    She Moved Abroad at 20 With No Connections—Now She Leads HR Across Southeast Asia

    May 23, 2025

    What Makes a Standout Job Candidate, According to This CFO

    May 22, 2025

    He Studied Accountancy—But Found His True Calling in Developing People

    May 22, 2025
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) LinkedIn
    Financial AdviserFinancial Adviser
    • Home
    • Success
      • Leadership & Growth
      • Entrepreneurship
      • Business Strategy
      • Inspiring Stories
    • Money
      • Investing
      • Personal Finance
      • Wealth Building
      • Financial Planning
    • Work
      • Career Development
      • Workplace Culture
      • Productivity & Efficiency
      • Management & Performance
    • Life
      • Relationships & Family
      • Health & Wellness
      • Mindfulness & Balance
      • Personal Growth
    • Inspiration
      • Vision & Purpose
      • Overcoming Adversity
      • Motivational Stories
      • Mindset & Motivation
    Financial AdviserFinancial Adviser
    Home»Money»Wealth Building»Struggling to Save? This Simple Rule Will Change Everything
    Wealth Building

    Struggling to Save? This Simple Rule Will Change Everything

    FinancialAdviser.phMarch 12, 20252 Mins Read
    Share Facebook Twitter LinkedIn Email Copy Link
    Share
    Facebook Twitter LinkedIn Email Copy Link

    Most people follow a simple budgeting formula: pay bills, cover necessities, and then save whatever is left. But what if that’s the wrong approach? Genesis Kelly Lontoc, a Registered Financial Planner, argues that paying yourself first should be the priority—not an afterthought.

    “We must pay ourselves first. We must set aside funds for the future at the onset,” Lontoc explains.

    This means shifting from the traditional 50-30-20 budget framework (where savings come last) to a 20-50-30 rule, where the first 20% of your income goes directly to savings, investments, and debt payments before anything else.

    Step 1: Automate Your Savings

    One of the easiest ways to pay yourself first is by automating savings. Set up a direct deposit into a separate savings account as soon as you receive your salary. This ensures that saving becomes a habit—not an afterthought.

    “The first step in the 20% component is to save. Savings support future consumption,” says Lontoc.

    Part of this savings should go toward an emergency fund, which should cover 6 to 12 months of expenses. This financial cushion protects against unexpected events like medical bills or job loss.

    Step 2: Manage Debt and Insurance

    Before focusing on wants, allocate funds toward debt payments and insurance.

    “Being able to settle debt provides financial and emotional relief. Paying short-term debt first can boost confidence in managing debt,” Lontoc explains.

    Additionally, insurance acts as a financial safety net. Whether it’s life, health, or non-life insurance, it ensures that financial setbacks don’t wipe out your savings.

    Step 3: Adjust Your Expenses to Fit Your Budget

    With 50% of your income allocated to needs and the remaining 30% to wants, it’s important to prioritize essential expenses.

    “Needs should always be prioritized over wants,” Lontoc emphasizes.

    This doesn’t mean eliminating all fun spending—just making sure it’s budgeted. Financial literacy isn’t about depriving yourself, but about creating a sustainable lifestyle.

    The Bottom Line

    By paying yourself first, you secure your future without sacrificing your present. The key is intentional budgeting, ensuring that your financial priorities are met before anything else.

    Loading

    Related

    Share. Facebook Twitter LinkedIn Email Copy Link
    Previous ArticleHow This Financial Planner Has Helped Clients Fix Their Money Mistakes for Over a Decade
    Next Article How to Start Investing With Any Budget (Even if You Think You Can’t Afford It)

    Related Posts

    Wealth Building

    From Active Income to Financial Freedom: A Financial Planner’s Roadmap to True Independence

    May 7, 2025
    Financial Planning

    Why a Financial Abundance Mindset Matters More Than Just Growing Your Wealth

    April 8, 2025
    Financial Planning

    Why Teaching Financial Discipline Early Is the Key to Building Wealth

    April 8, 2025
    Add A Comment

    Comments are closed.

    Demo
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn

    Subscribe to Updates

      Get the latest updates from Financial Adviser about financial literacy and business acumen. Subscribe to our mailing list!

      By checking this, you agree to our Data Privacy Consent/Agreement and accept our use of such cookies.
      I agree to the Terms and Conditions

      Facebook X (Twitter) LinkedIn RSS

      Home

      Sucess

      • Leadership & Growth
      • Entrepreneurship
      • Business Strategy
      • Inspiring Stories

      Money

      • Investing
      • Personal Finance
      • Wealth Building
      • Financial Planning

      Work

      • Career Development
      • Workplace Culture
      • Productivity & Efficiency
      • Leadership & Management

      Life

      • Relationships & Family
      • Health & Wellness
      • Mindfullness & Balance
      • Personal Growth

      Inspiration

      • Vision & Purpose
      • Overcoming Adversity
      • Motivational Stories
      • Mindset & Motivation

      Contact Us

      Subscribe to Updates

        Get the latest updates from Financial Adviser about financial literacy and business acumen. Subscribe to our mailing list!

        By checking this, you agree to our Data Privacy Consent/Agreement and accept our use of such cookies.
        I agree to the Terms and Conditions

        Copyright © 2025 Financial Adviser. All rights reserved.

        • Privacy Policy

        Type above and press Enter to search. Press Esc to cancel.

        FINANCIALADVISER.PH USES COOKIES TO ENSURE YOU GET THE BEST EXPERIENCE WHILE BROWSING THE SITE.

        By continued use, you agree to our Data Privacy Consent/Agreement and accept our use of such cookies. For further information, click the link Data Privacy Consent/Agreement.