Man, it's been a while. I guess I got kinda bored with nothing to write about so I gave up for a bit.
First, Happy New Year 2014 readers. I hope you're having a wonderful start to the new year.
I came across an article on Yahoo about people who earn six figures yet don't have much saved. In a way I understand their situation, the more money you bring in the more expenses you'll incur. But unlike them who make $100k+/year, I make less than half. And my expenses may not be as large as theirs but nonetheless I have bills to pay and have to put food on the table just like any other grown up.
The purpose of this post is to share my savings plan. Keep in mind that this works for me, for now. It may not work for everyone but I hope this at least helps your cause a little.
First a little background: like any other young adult, in my teens and early 20's I didn't "know" how to manage my money. I still don't, but now that I have priorities I've improved significantly. So back then I would spend money mindlessly and rack up my credit cards and pay the bare minimum. I also went years without paying on a student loan until just recently when my paychecks began to be garnished. Part of that is the reason why what I've put aside has also increased.
Now, if you take anything from what I write here it's this: make a plan and stick to it.
So here goes....
First I need to let you guys know that I have three accounts: One regular checking which I use for EVERYTHING, one "cushion" checking (in case expenses are too much I start using this account), and a savings. I don't touch my savings unless it is absolutely necessary, but then I try to put the money back. Also, the savings is at a credit union a couple of miles away, and I don't have an ATM card, so if I need money I have to "work" to get it. The night before I get paid I transfer what little I have left in my regular checking to my "cushion".
I get paid bi-weekly, so every other Friday I set $200 aside (it used to be 10% but that garnishment helped). So let's say my check comes to $850. 10% goes to my "cushion" and the difference goes to savings (or vice versa, whichever is greater goes to savings). So in this case $85 goes to "cushion" checking and $115 to savings. That's it.
Now a few days ago I got a part time job. The purpose of this is to save for our wedding, a newer car and to move elsewhere closer to our families. So now in order to not spend that part time income that money is going straight to savings. I'm not touching it. The way I see it, once I reach my financial goal and I go back to one income it'll be as if it was just that: one income.
As I stated before, this may not work for everyone. Each person's income and financial situation is different. But if anything, plan something and stick to it.
Best of luck.