There a number of good reasons to do so from both a practical standpoint and also from a behavioral finance standpoint — it’s tougher to spend money that never hits your pocket or checking account.
The best way to pay yourself first is to automate the process. That way, you never have to think about it.
If I had to choose only two principles to teach anyone new to personal finance it would be your savings rate and automating your financial life.
Your savings rate matters more than just about anything else if you want to become financially independent.
This is because your savings rate incorporates other important ideas like spending less than you earn. The second, and equally important principle, is to pay yourself first by automating your financial life.
The purpose behind paying your self first is to prevent yourself from the most common American financial mistake – spending everything you earn. If the money is swept out of your bank account to your real priorities first, then you cannot spend it.