What does 'paying yourself first' mean?

'Paying yourself first' refers to the financial strategy of prioritizing savings by setting aside a portion of your income for savings or investments before allocating funds to other expenses. This approach emphasizes the importance of treating savings as a non-negotiable expense to ensure financial security and long-term wealth accumulation. By consistently saving a predetermined amount regularly, individuals can build their savings or investment accounts, which can aid in achieving financial goals, such as retirement or purchasing a home. This method helps create a habit of saving and is essential for financial stability, encouraging individuals to place their future financial health above immediate spending desires.