WEEKLY MONEY TIP

Boost Your Savings

Don't have unpleasant thoughts when you hear the word "budgeting".  While this word may send chills down your spine, it helps navigate where your money should be going. 

 

The first step in budgeting is to analyze your spending.  This requires a thorough look at your expenses and income.  Once this has been accomplished, determine how much you want to save each month.  After you write down that figure, start makes very difficult choices and slash expenses. 

If you desire to save 10% of your income towards an emergency fund or retirement, make that sacrifice on your budget plan and don't delay.  Start training your mind that saving money is priority.

last week's tip

The 50/30/20 Rule

Over the next several weeks, reel in your discretionary spending.  Discretionary expenditures are the variable items in your budget that are not recurring every month.

By following the 50/30/20 Rule, you establish a method to your budget (50% focuses on essential items, 30% are your wants, & 20% towards savings).

For example, if you make $5,000 per month, the break down of your budget when applying this method should reflect:

Essential $2,500

  • Rent

  • Food

  • Insurance

  • Utilities

  • Child-Care

  • Fuel

  • Debt Payments


Wants $1,500

  • Entertainment

  • Dining

  • Subscriptions

  • Snacks

  • Vacation

  • Shopping


Savings $1,000

  • Retirement

  • Savings Account

  • College Savings

  • Investing

Try focusing on a new "Want" item with every paycheck to ease into the adjustment.  Make every dollar in this category count and start watching the impacts on your budget.

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