Which money management approach emphasizes saving money before addressing other expenses?

The Pay Yourself First Method is a money management approach that prioritizes saving money before tackling other expenses. This strategy encourages individuals to set aside a specific amount for savings or investments as soon as they receive their income, thereby treating savings as a non-negotiable expense. By making saving a priority, individuals are more likely to build their financial security and reach their long-term financial goals, such as emergency funds, retirement, or major purchases.

This method effectively instills a discipline that can prevent individuals from spending all their income on discretionary expenses. It shifts the focus to growth and financial health right from the start of the budgeting process, rather than last, which can lead to inconsistent saving habits.

Other approaches may address budgeting and expenses in different ways, either by focusing on what comes after expenses or not specifically emphasizing saving first. Therefore, the Pay Yourself First Method is distinctly recognized for its proactive stance on saving.