By Gabriele Denaro · Published 20 September 2026 · Updated 6 October 2026
The usual order is to get paid, spend through the month and save whatever remains, if anything does. Paying yourself first flips it: a fixed amount or percentage moves to savings or investments as soon as income arrives, and you spend what is left.
Spending has a way of expanding to fill the money available, so saving what is left often means saving nothing. A €200 monthly transfer adds up to €2,400 a year. Left to willpower at the end of the month, that money competes with every small purchase that looked reasonable at the time.
Set a standing order from your current account to a separate savings or investment account for the day after your salary arrives. Start with an amount you will not miss, even 5% of your pay. Raise it when your income rises, before the extra money gets absorbed into spending. Once it is automatic, saving no longer depends on a decision you have to make every month.
If essentials take everything, start with a token amount such as €20. The habit comes before the size. Look at what is crowding out saving: high rent, debt payments or an income that needs raising are different problems with different answers, and no transfer fixes them by itself.
Once a month, look at whether the transfer happened and how the savings account is growing. That is the same monthly rhythm you use for net worth, and it is more durable than deciding every day, against every temptation, to save.
General educational information, not personal financial, tax or legal advice. It may be incomplete or out of date. Terms of use.