Skip to content
News & commentary

Pay Yourself First – A different way to look at budgeting

Home News & Commentary Pay Yourself First – A different way to look at budgeting
Jon Glougie

Jon Glougie

Pay Yourself First – A different way to look at budgeting

For most people, budgeting can be one of the most arduous tasks on the “to do” list. We generally try to go through our monthly expenses with a fine-tooth comb to make sure that we don’t spend too much on life, so that we can save what we have left at the end of the month for our financial goals. Another way to consider budgeting, is to treat your financial goals/savings like a non-discretionary expense (like a mortgage or a car payment). Those non-discretionary expenses are deducted from your income before you ever have a chance to spend the money. Treat your savings/investments the same. For example, if you know that you want to save $12,000 for a major purchase in 2 years, then you can allocate $500/month to this goal. But rather than work through a budget to make sure that you have $500 left at the end of the month to save, you can treat the $500/month savings as a non-discretionary expense. Treat the savings for your goals the same way you would treat a mortgage payment. When a paycheque shows up in your bank account, allocate the amount that you need for your financial goals to a savings/investment account. This way, once you have allocated all of the money that you need to save to your goals (and pay your expenses), you can spend the rest of the money in your bank account without worrying about whether or not there will be anything left to save at the end of the month.

Written by:
Jon Glougie, CFP®, CIM®
Associate Portfolio Manager 
Luft Financial, iA Private Wealth  


This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of iA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

How do we elevate your wealth?

It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.

News & commentary

May 2024 Portfolio Management Team Update

May 2024 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth May 17, 2024 Market Review Global equities fell in April after five straight months of gains, as concerns about sticky inflation and receding optimism about interest rate cuts by the Federal Reserve sapped investor sentiment. However, markets have […]

Read more

April 2024 Portfolio Management Team Update

April 2024 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth April 10, 2024 Market Review Global equities advanced for the fifth straight month in March, capping a stellar quarter for stocks and enabling the MSCI All-Country World Index to post a record high on the last trading day […]

Read more

March 2024 Portfolio Management Team Update

March 2024 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth March 20, 2024 Market Review Global equities advanced for the fourth successive month in February, as growing confidence in a “soft landing” for most major economies took the MSCI All-Country World Index to a new high. The TSX […]

Read more