Everywhere you look people are talking about paying yourself first. The ‘it’ thing is to sock some money away in savings BEFORE you pay any bills.

Well that is easy enough to say when you make more than minimum wage. Here’s a scenario:

You make $400 a month….yes $400 as a college student who can only work part time for minimum wage. You share an apartment with someone so your rent is $250. There is a monthly loan payment of $100 plus you have to buy groceries, pay the minimum on your credit cards, pay electricity and pay for a phone.

How do you pay yourself first in this case? The rent and the loan….which you must pay are already at $350 which is already 87% of your income. This leaves you with only $50 to buy food and pay the rest of your bills.

Again I ask….HOW can you pay yourself first when you are truly living paycheck to paycheck and moving credit card balances around from card to card to make the minimum payments.