Life throws up some curveballs, doesn’t it? From one moment to the next, even the most serene looking people are churning problems over in their minds, thinking about how they can put one fire out and move on to the next.
You could be hit with veterinary bills. Or let’s say you run into issues with your car. That’ll cost you money. Or you could even find yourself sorting out a more serious matter, such as the aftermath of being involved in a drink driving accident. Incidentally, if you have been affected, contact a local DUI lawyer from Hermosa Beach for more information.
Whatever the case, saving now for what’s coming around the corner is nothing short of prudent, and it’s a skill we could all use a refresher course on from time to time…
How much of your wages should you save?
There’s this thing floating around the internet at the moment called the 50 / 30 / 20 rule. It’s the kind of rule that isn’t meant to be followed exactly, but the closer you can get to it, the more you will benefit. In essence, the rule states that you should spend 50% of your earnings on bills, spend 30% on necessary things like food, and save 20% of your wage.
Now, if you have a house, a car, a family, a preference for eating food and wearing clothes, and maybe a certain liking of actually getting out of the house on the weekend and doing something crazy like going to the cinema or going to a restaurant, you will probably look at the numbers and think “who can afford that?”. However, that’s why it’s only a guide. The closer you can get to the 50 / 30 / 20 rule, the more you will know that you’re bringing your A game to the savings pot.
Audit yourself
This is one of the fastest ways to ruin your week and call all of your life’s decisions up to this point into question. But it needs to be done. Open your laptop or banking app and actually make note of all of your incomings and outgoings. Your income will no doubt be one monthly payment from your job. So, this is your starting point. From here, you need to minus all of your monthly outgoings. At this point, your head will start to spin with all the savings you could have made if you hadn’t indulged in certain expenditures.
For example, you could find that you are paying for memberships to clubs that you very rarely attend (such as gyms or leisure centers). You could also note that you are paying for multiple streaming services, which you do willingly just in case you need them, but if you think about how much you really use these multiple services, you will soon see that you are paying hand over fist for things you don’t need.
Auditing yourself is tough … but it’s the only way you’re going to get closer to the 50 / 30 / 20 rule.