The First Bill I Pay Every Month, According to Kate Kaden
Most people pay their rent, their car payment and their phone bill without thinking twice. But personal finance creator Kate Kaden says there's one bill most people consistently skip: themselves.
In a recent YouTube video, Kaden laid out why paying yourself first is the habit that changes everything, and how to start even if money is tight.
Read Next: 11 Bills You Should Never Put on Autopay
Find Out: 8 Low-Effort Ways to Make Passive Income (You Can Start This Week)
The Problem With Saving What's Left Over
Kaden said most people save whatever is left at the end of the month. The reason that doesn't work is simple: There's usually nothing left because savings were never prioritized in the first place.
Lifestyle creep makes it worse. When people get raises or bonuses, spending tends to rise to match the new income. Without a system that treats savings as nonnegotiable, the money just disappears.
"Money disappears when it doesn't have an assignment," Kaden said. "If your savings are only getting leftovers, it will always be hungry."
The Mindset Shift That Makes It Work
The core of Kaden's approach is treating yourself like a bill. Bills get paid first because they're nonnegotiable. She said savings should work the same way: not optional, not extra, just required.
The idea comes from George S. Clason's personal finance classic "The Richest Man in Babylon," built around the principle that a portion of everything you earn belongs to your future self first.
How To Build the Habit
Kaden said the starting point is simple: Pick a percentage or dollar amount that feels manageable right now, like 5% or 10%. A simple $25 a week works as well. The number matters less than the consistency.
From there, the goal is to increase contributions gradually as the habit gets easier. If the amount isn't sustainable, lower it temporarily, but never stop entirely.
For people who can swing it, automation is the easiest path. Set it up once, and the money moves before you can spend it. For those who prefer not to automate, Kaden suggested withdrawing cash at the ATM and setting it aside manually. The method doesn't matter as long as it happens.
She also recommended renaming the savings account something that carries personal meaning, a "freedom fund" or "peace fund," to make the habit feel less like a chore and more like progress.
What To Do If Money Is Already Tight
For people living paycheck to paycheck, Kaden said to start with $10. Cut one small expense, skip one drive-through run and guard that $10. If even that feels impossible, she pushed toward finding a side hustle or additional income stream to create a little more breathing room.
"Savers aren't necessarily people that have money," Kaden said. "Savers are people who prioritize it."
Why It's Worth It
Kaden described what financial consistency actually feels like in practice: no panic when the car breaks down, no anxiety before payday and no dread when checking your balance. Savings, she said, doesn't just change your bank account. It changes how you move through the world.
The first bill you pay every month should be to yourself. Everything else comes after.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion:
