Pay Yourself First: FNBO’s Challenge and What It Means in Savings For Everyone

A recently-concluded Pay Yourself First (PYF) Challenge initiated and sponsored by FNBO, tracked the lives of 5 different people based in different cities. Each had unique savings goals, and adapted different means of saving and reaching their goals. At the end of the 6-month challenge, FNBO matched dollar-for-dollar what each of the participants was able to save up to a maximum of $5,000. In addition, the winner of the challenge is slated to receive a vacation package worth $7,500.

Over the course of the contest, the 5 participants kept followers up-to-date on their strategies and how near they were to their savings target using their blogs. When the challenge ended, all 5 participants were able to bank as much as $63,000 in combined savings.

What is PYF?

The Pay Yourself First concept is by no means a novel one. It has been touted by many financial gurus and personal finance advisers as an effective strategy to staying out of debt and getting rich. Maybe not quickly, but certainly.

Simply put, paying yourself first means regularly setting aside a portion of your income for savings even before you even start to tackle the bills. While this may seem like a tall order for those who just live from paycheck-to-paycheck, paying oneself first has actually worked for so many households.

Why pay yourself first?

It’s so easy to get sidetracked by all types of bills and loans. There’s the mortgage, the car, student loans, the credit card, groceries, kids’ needs… the list could be endless. But by developing the mentality of paying oneself first, you are essentially making savings a priority — never mind that you now forego that weekly treat you usually set aside for yourself, or eat out just once a month now instead of weekly. Plus, as your small savings starts to grow, you become more enthusiastic about saving and cut back on expenses some more, or find ways to earn some side income.

Getting the most out of the PYF Challenge

One good thing that has come out of this financial crisis is that people are becoming more aware of the importance of saving. When the housing boom was at its peak, many Americans deemed it unnecessary to have personal savings. If more consumers can realize how “paying yourself first” can effectively jumpstart good finance habits, the nation’s current personal savings rate of 5% would certainly see higher growth.

Choose a savings account that offers a high interest rate, free online transfers to a separate checking account, or free online bill pay to help you pay your bills conveniently. While FNBO offers all these services, you an also look around for other banks with similar or better offerings.

About the banks

 

FNBO Direct

First National Bank Omaha is a subsidiary of First National of Nebraska, a multi-state holding company located in the heart of downtown Omaha, with a strong banking heritage that dates back over 150 years.

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