Pay Yourself First Budget

How to use the Pay Yourself First budget method in Forbidden Finance to prioritize saving before spending.

Overview

Pay Yourself First flips the traditional budgeting script: instead of saving whatever is left over at the end of the month, you set aside savings first and then spend the rest freely. You choose a savings percentage (for example, 20%), and that amount is earmarked the moment your income arrives. Everything else is yours to spend without guilt or category tracking. This method is available on the Free tier.

This approach works well for people who want to build savings consistently but find detailed category tracking tedious. The simplicity is the strength -- as long as you hit your savings target, you are on track.

How to Set Up Pay Yourself First

Open the Budget Wizard

Navigate to Budget and tap Create Budget. Select Pay Yourself First from the method list.

Enter your monthly income

Enter your total monthly take-home pay.

Set your savings percentage

Choose the percentage of income you want to save each month. Common targets range from 10% to 30%, but you can set any amount that works for your situation.

Activate your budget

Review the summary showing your savings target and remaining spending amount, then tap Activate.

Reading Your Progress

Pay Yourself First tracks two key numbers:

Metric	What It Means
Savings rate (target)	The percentage you set during setup
Savings rate (actual)	Your real savings rate based on income minus total spending

The main progress indicator shows whether you are on track or behind. If your actual spending leaves enough room for your savings target, you see a green on-track status. If your spending pace suggests you will exceed your budget, you see a behind status with the projected shortfall.

Example Setup

You earn $4,000 per month and set a savings rate of 25%.

	Amount
Monthly income	$4,000
Savings target (25%)	$1,000
Available to spend	$3,000

Two weeks into the month, you have spent $1,600. At that pace, you are projected to spend $3,200 by month end, which would leave only $800 for savings (20% instead of 25%). Forbidden Finance flags this as behind so you can adjust your spending for the rest of the month.

When to Use This Method

Pay Yourself First is ideal if:

You have a clear savings goal (emergency fund, down payment, investment target) and want to make sure you hit it every month.
You dislike categorizing every expense but still want financial structure.
You have stable income and predictable essential expenses.
You find detailed budgets stressful and want a simpler alternative.

If you want even less structure, consider the Anti-Budget method, which works similarly but uses a fixed dollar amount instead of a percentage.

Tips

Automate your savings if possible. Set up an automatic transfer to a savings account on payday so the money moves before you have a chance to spend it. Then use this method to verify it is happening.

Start with a savings rate you know you can hit. It is better to consistently save 15% than to set a 30% target you miss every month. You can always increase it later.

This method does not track spending categories. If you find yourself consistently overspending in one area (like dining out) and want visibility into where the money goes, consider 50/30/20 or Zero-Based instead.