Raymond has $1000 in gross salary every month. If he wants to save $200 per month based on his budget by using the pay yourself first method, Raymond should

Question

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The pay yourself first method means that you prioritize saving money before spending it. In this case, Raymond wants to save $200 per month, so he should set that money aside first. Option A is incorrect because it suggests transferring the majority of his salary, leaving little room for other expenses. Option B is not ideal because using cash envelopes may not be as secure or convenient as using a bank account. Option D is not recommended because it suggests transferring money from his investment accounts, which may incur penalties or fees, and may not align with his long-term financial goals. Therefore, the best choice is C, which suggests transferring the desired amount of $200 from his chequing account to his savings account right away.

Raymond Has $1000 in Gross Salary Every Month