Paying Yourself

Hi Community friends! We've reached the middle of the week with another wonderful Wednesday. In the interest of the new year, one of my personal goals is to save money. With some of the circumstances that seemed to go hand-in-hand with the year 2020 (quarantine/working at home), I kind of had a realization that a lot of the things I was purchasing weren't necessary. The more I stayed home. the more I noticed what I had been previously spending. And it was a little scary! I had to have an internal monologue consisting of one simple statement, "Stop buying stuff!" Anyways, I say all of that to share that in my research on money saving tips, I found an excellent formula to pay yourself every month. Here it is:

Take the money you earned
subtract
The amount needed to cover bills and expenses
subtract
15-20% for savings account
add the remaining
to personal account

This simple solution covers all the bases. You're paying what you have to regarding bills and other expenses, such as house payment or rent, utilities, groceries, gas, doctor visits, etc. You're also saving the same percentage each month, which will add up quicker than you think. And lastly, you'll have remaining funds left over for any unexpected costs and maybe a nice dinner or movie every now and then.

I was so glad I came across this formula. I always tried to save a little money with each paycheck, but didn't really have a set system. So, how are you saving money this year? Or how have you been saving previously? Do you have a fail proof formula similar to the one I shared? We'd love to hear your strategy! Have a great rest of your week.