Video transcript:

Hey everyone. In today’s video, I’m going to share my paycheck routine—the simple system I use to keep my finances organized and move closer to my goals.

By following this easy checklist, you can make sure your money works for you instead of just disappearing before the end of the month. I think we’ve all had those moments where we look back at a paycheck and wonder, where did it all go?

So without further ado, let’s jump in. The first step in my paycheck routine is paying down high-interest debt. Debt comes in many forms—car payments, student loans, credit card balances, and more. But not all debt needs to be tackled right away.

I prioritize debt with higher interest rates—generally anything non-mortgage above 5%. There are two common methods for paying off debt: the debt snowball and the debt avalanche.

With the debt snowball, you start by paying off your smallest balance first, then work your way up to larger balances.

With the debt avalanche, you start with the highest interest rate first, then work your way down.

No matter which method you use, it’s important to always make minimum payments on all your debts before putting extra toward the one you’re targeting. That way, you stay current and avoid hurting your credit score.

Personally, I prefer the debt avalanche method because tackling the highest-interest debt first usually saves you the most money in the long run.

The second step in my paycheck routine is making sure I’m getting the full employer match in my 401k.

Now, here’s where my view is a little different from what you’ll often hear in the personal finance space. A lot of people call the 401(k) match “free money.” I don’t see it that way. To me, it’s part of your total compensation. It’s a cost to the employer and a form of income for you—the employee. The only catch is, you have to take the right steps to actually unlock your match.

Maybe it’s just semantics, but I think of the employer match as my money, and I don’t want to leave any of it on the table.

Every employer is different, but the goal is the same: take full advantage of whatever match they offer. Some companies match dollar-for-dollar, others do a partial or tiered match. A little research into your plan is all it takes to make sure you’re getting the maximum benefit.

The third step in my paycheck routine is keeping an eye on my budget and past spending.

A simple approach I like is the 50/30/20 rule. That means 50% of your income goes to essentials, 30% to wants, and 20% to savings. Easy to remember, and a good framework to start with.

Each time I get paid, I do a quick check-in. Do I have any big expenses coming up? What categories could I cut back on? And—this one always gets me—is there anything I spent money on that I completely forgot about?

The first step to improving your finances is self-awareness. This budget review helps me stay mindful of my spending and focus on what’s actually important.

Some common areas people can cut back are subscriptions they don’t use, food delivery apps like DoorDash or Uber Eats, and eating out instead of cooking at home.

Now, I’m not saying you should never spend money on these things. But the amount you spend on wants should be a small portion of your income.

The fourth step in my paycheck routine is saving outside of my workplace retirement plan—if you’re able to.

I put this step after paying off debt and taking advantage of the 401(k) match on purpose. In most cases, those come first. But once you’ve handled those and still have money left over after covering your expenses, it’s time to think about saving more on your own.

That could mean putting money into a savings account, a Roth IRA, or even a taxable brokerage account. Personally, I’d start with an emergency fund—enough to cover three to six months of living expenses.

Once that’s set, I’d move on to a Roth IRA. And after you max out your Roth, then you can look at a taxable brokerage account.

The fifth and final step in my paycheck routine is to audit your pay stub. Take a minute to verify everything—your hours, rate, gross pay, taxes, benefits, and deductions.

And here’s a tax tip from a CPA: don’t just blindly trust that your withholdings are correct. Think of them as an estimate your employer makes based on the info they have about you. Employers can make mistakes. And they probably don’t know about other income or deductions you have, which can throw things off.

If your withholdings are wrong, it can cost you. If they’re too low, you could face penalties and interest next tax season. If they’re too high, it’s like giving the IRS an interest-free loan all year—and that means smaller paychecks hitting your bank account.

Personally, I aim for a small refund each year, just to stay on the safe side. I’ll drop a link to an online tax calculator in the description so you can compare your withholdings. And if you need to make changes, you can always submit an updated W-4 form to your employer. I’ll show an example of the W-4 Form on the screen.

So there you have it—that’s my paycheck routine as an accountant. With just a little planning upfront, you can make way more progress toward your financial goals.

If you found this video helpful, please hit that like button. And if you want to see why I keep my emergency fund in SGOV—the iShares 0–3 Month Treasury Bond ETF—check out the video linked up above. Thanks for watching, and I’ll see you in the next one. Take care.