Deciding what to pay first

To make your monthly income last, pay for things in this order.

  1. Pay your monthly bills. There are many potential penalties if you pay late, such as late fees, losing possession of things you’ve bought on credit, even being evicted from an apartment!
  2. Set aside the money you’ll need for your weekly and day-to-day expenses, like groceries and bus fare.
  3. Put money into savings. Try to build two months of take-home pay for an unexpected financial emergency.
  4. Set aside money for larger expenses you know are coming, such as car repairs or appliances.
  5. Set aside money for your major future goals whether it’s a home, college for your children, a new car, or travel.


  • Paying bills late can seriously damage your future ability to borrow.
  • If you begin to earn more, increase the amount you save as much as you can.

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