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In today’s fast-moving world, it’s easy to spend first and think about saving later. The convenience of online shopping, instant payments, and lifestyle temptations makes it simple to use up our salary as soon as it arrives. However, Chartered Accountant (CA) Meenal Goel believes there’s a much better way to handle money — save first, spend later.

This simple change in mindset, she says, can completely transform your financial life. It’s not about how much you earn, but about how you manage what you earn. Let’s understand why this approach works, how it builds financial security, and how you can start applying it in your daily life.

The common money mistake: Spending first, saving later

Most people follow this pattern — they receive their salary, pay their bills, shop for things they need (and want), go out with friends, and then, if anything is left, they put it into savings.

Sounds familiar? It’s the most common approach. But according to CA Meenal Goel, it’s also the most dangerous one.

Why? Because when you save “what’s left,” you’re leaving your financial security to chance. Life has a way of bringing unexpected expenses — an urgent medical bill, a car repair, or a family event. And in such moments, the little money left in your account often disappears.

When you spend first, you lose control over your budget. But when you save first, you control your future.

The golden rule: Pay yourself first

CA Meenal Goel puts it simply: “Treat your savings like a bill you must pay.”

When your salary arrives, the very first transaction should be transferring a fixed percentage into your savings or investment account. Think of this as paying yourself — your future self.

Let’s take an example. Suppose you earn ₹50,000 per month. If you decide to save 20%, then ₹10,000 should immediately move to your savings account before you spend even a rupee. You can use the remaining ₹40,000 for your monthly expenses.

This practice, known as the “Pay Yourself First” rule, ensures that your savings grow automatically without waiting for the perfect time or extra income.

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Why saving first works better than any budget plan

Budgeting is great, but without discipline, it’s easy to break. Saving before spending, on the other hand, builds a natural form of discipline.

Here’s why it’s effective:

• It forces you to live within your means. When you save first, you automatically learn to manage with what’s left.

• It removes guilt. You no longer feel guilty for spending because you’ve already saved your share.

• It builds consistency. Even small, regular savings grow significantly over time due to the power of compounding.

• It provides peace of mind. Knowing you have money set aside reduces financial anxiety and helps you plan long-term goals calmly.

In short, saving first helps you create a lifestyle that balances both your present enjoyment and future security.

Building a savings habit: Start small, but stay steady

Many people delay saving because they think their income is too low. But Meenal Goel stresses that “saving is a habit, not a number.”

You don’t need to start big. Even saving ₹500 or ₹1,000 every month builds the habit of putting money aside. Once your income grows, your savings can grow too.

Here’s a simple way to start:

1. Decide your percentage — 10%, 15%, or 20% of your income.

2. Automate it — Set up an auto-transfer to your savings or mutual fund SIP.

3. Forget it — Treat that saved amount as untouchable.

Over time, you’ll realize how these small savings add up. A year later, you’ll thank yourself for making that first move.

The psychology behind saving first

Financial experts often say that money management is 80% behavior and only 20% knowledge.

When you save first, you’re training your brain to value security over impulse. Psychologically, it creates a sense of progress — each time you save, your mind feels rewarded. This makes you more motivated to continue.

On the other hand, spending first gives you short-term pleasure but long-term regret. By flipping the pattern, you shift your focus from “instant happiness” to “lasting peace.”

Saving first builds patience, discipline, and confidence — all key ingredients for financial success.

How saving first helps during emergencies

We’ve all seen how uncertain life can be — from job losses to health crises. The COVID-19 pandemic was a harsh reminder of why emergency funds are crucial.

By saving first, you slowly build a safety net. Experts recommend keeping at least 6 months’ worth of expenses in an emergency fund. This ensures that if something unexpected happens, you won’t need to take loans or swipe credit cards.

Imagine the comfort of knowing that you can handle any surprise without stress — that’s the true value of saving first.

Turning savings into wealth

Saving alone isn’t enough — it’s what you do with your savings that creates wealth.

CA Meenal Goel advises using your saved money smartly:

• Keep an emergency fund in a liquid account.

• Invest regularly in SIPs, index funds, or recurring deposits.

• Set goals — a vacation, a car, or retirement — and save separately for each.

When your savings are invested wisely, they start working for you. Over time, your money grows without you having to do extra work — this is how financial independence begins.

Saving first is about peace, not pressure

Many people associate savings with restriction — as if saving means missing out on fun. But in truth, saving first brings freedom.

It gives you the freedom to make choices without fear. You can change jobs, take a break, or pursue a passion project without financial panic.

As Meenal Goel says, “Money saved is not money locked — it’s money that gives you options.”

Real-life example: The stress-free saver

Consider two people — Riya and Rahul. Both earn ₹60,000 per month.

• Riya spends first, then saves what’s left.

• Rahul saves ₹10,000 immediately every month.

After one year, Riya has ₹15,000 in her account. Rahul has ₹1,20,000 plus some interest from SIPs.

When an unexpected family medical bill arrives, Riya has to borrow money, while Rahul calmly withdraws from his emergency fund. That’s the difference saving first makes — it turns panic into confidence.

The bottom line: Make your money work for you

At the end of the day, saving before spending is not just a financial rule — it’s a mindset. It’s about respecting your hard work and ensuring it builds something meaningful for your future.

So the next time your salary hits your account, remember Meenal Goel’s golden advice: “Don’t wait to see what’s left — decide what to keep first.”

Because when you save before you spend, you’re not depriving yourself. You’re giving yourself freedom, peace, and the power to live life on your own terms.