Want to Save 20 Percent of Your Monthly Income? It’s Not Impossible!
Financial experts have oftentimes advised us to save around 10 percent of our earnings, but in this case, the adage ‘the more, the merrier’ is true. If you are even savvier, you should be setting aside 20 percent of your monthly income.
Although it sounds hard, it’s not impossible at all. There are ways to increase your income savings to up to or more than 20 percent, here’s how:
Check Subscription Services
How many times have you signed up for a free trial and forgot to cancel? Most of us are guilty of this, however, it is one of the fees that is constantly eating up our money without our knowledge.
Keep track of all the things you’ve subscribed to and note which ones you don’t need anymore. A 2019 survey found that on average, Americans spend a little over $237 on subscriptions per month.
While automatic payments are a blessing, it can also be a curse. Because you’re inattentive of what’s deducted, the fees could rack up. When the bills arrive, you’ll be surprised to see that it has ballooned into a big amount that you have to pay.
Keep a Percentage of Bonuses or Unexpected Cash
We all have different ways to spend bonuses, but most people would probably buy the next generation iPhone, thinking that they will be using their ‘extra money.’ Instead of using this unexpected cash for an impulsive purchase, plan – that is, think of how you will use it before it arrives.
For instance, you can save half of the extra money that will come your way. If you keep up with your goal, you can easily surpass that 20 percent.
Set Goals
Anyone can get easily derailed when they don’t know what they want to achieve. The same goes for saving – it is always best to have a goal in mind to help motivate you.
Think of whatever works for you. For instance, you want to save $10,000 this year — then you can anchor how you’re going to save every month in order to reach that goal.
Pile Your Savings
The bigger the savings, the more the expenses. This is because when we see that we have already saved a huge sum and thought that we have covered our goals, we tend to be complacent and spend carelessly.
However, meeting your vision isn’t a green light to spend lavishly. Before you know it, you are on the red. This is a financial phenomenon known as ‘lifestyle creep.’
Slowly introduce the habit of increasing your savings. Begin by adding an amount to your savings and doubling this in the following month.
More in financial advisor
-
`
Remote Work: Managing Your Finances in a Post-Pandemic World
Remember the golden age of work-from-home bliss? No commute, comfy PJs all day, and a fridge perpetually stocked with your favorite...
December 31, 2023 -
`
The Power of Apps That Help Manage Finances & Savings
Understanding money can be tricky, even for grown-ups! You might have heard about saving money and managing finances, but it’s not...
December 23, 2023 -
`
Italian Luxury Car Brand Lamborghini Reveals ‘One-Of-A-kind’ Masterpiece
Lamborghini, a name synonymous with luxury and high performance, marked its 60th anniversary with a stunning revelation – the Revuelto ‘Opera...
December 23, 2023 -
`
The Rise of LVMH to a $500B Luxury Powerhouse
In the world of luxury brands, LVMH Moët Hennessy Louis Vuitton stands as a colossus, embodying the pinnacle of opulence and...
December 8, 2023 -
`
How To Travel the World Using Credits
Traveling can be an exhilarating and enriching experience, but it can also be expensive. However, with the right strategies and planning,...
December 3, 2023 -
`
Amazon’s $4 Billion Investment in Anthropic
In a move highlighting the intensifying battle in the tech industry, Amazon recently announced its substantial investment of up to $4...
November 24, 2023 -
`
Is the Future of Shopping Cashless?
The way we shop has significantly transformed in recent years, thanks to the rise of cashless payments. Traditional methods of exchanging...
November 18, 2023 -
`
Jeff Bezos and Lauren Sánchez’s $500 Million Superyacht
Set your course for a journey into the world of maritime magnificence as we unveil the $500 million superyacht belonging to...
November 11, 2023 -
`
Unlocking True Sustainability in Business and Finance
In the race towards a greener future, businesses and financial institutions have been progressing at a snail’s pace despite their public...
November 5, 2023
You must be logged in to post a comment Login