I don't agree with how 'pay yourself first' has been described. First- it's a mindset thing, you're thinking about putting away money for the big-picture important stuff as soon as you get paid. Second, I think you've really dumbed down what people do when they 'pay themselves first' - of course you are thinking about bills & what you need to survive. But the idea is that you work out all your expenses and bills, what money you need for you to enjoy your life and then transfer the money leftover (or that you have budgeted out) into savings or investments. If it sits there in your monzo waiting till the end of the month there's a good chance you will spend it and you can easily loose track of what you are spending. If you had budgeted everything well and have sinking funds/ emergency funds, then this was money that had no 'use' and you probably just went around spending without noticing and would do more for you if had sent it off to savings/ investments. For instance I have everything budgeted down from bills, rent, food, transport, phone, subscriptions, a 'random pot', fun money, language classes etc. Then I see what's left- does it meet my expectations to achieve my money goals- if not then I might slightly adjust, but that money I send away.
I don't agree with how 'pay yourself first' has been described. First- it's a mindset thing, you're thinking about putting away money for the big-picture important stuff as soon as you get paid.
Second, I think you've really dumbed down what people do when they 'pay themselves first' - of course you are thinking about bills & what you need to survive. But the idea is that you work out all your expenses and bills, what money you need for you to enjoy your life and then transfer the money leftover (or that you have budgeted out) into savings or investments. If it sits there in your monzo waiting till the end of the month there's a good chance you will spend it and you can easily loose track of what you are spending. If you had budgeted everything well and have sinking funds/ emergency funds, then this was money that had no 'use' and you probably just went around spending without noticing and would do more for you if had sent it off to savings/ investments.
For instance I have everything budgeted down from bills, rent, food, transport, phone, subscriptions, a 'random pot', fun money, language classes etc. Then I see what's left- does it meet my expectations to achieve my money goals- if not then I might slightly adjust, but that money I send away.