10 10 80 Financial Lifestyle: 10% Savings
Instead of saving leftovers, make it a priority and an automatic must before you start spending your paycheck. Saving 10% of your gross income every month will allow you to build solid financial footing. Here are practical ways to make this happen:
- Open a savings account and ask your bank to put withdrawal limitations on that account.
- Ask your employer / HR department to split your paycheck and designate 10% off the top to go into that specific savings account.
- If your employer offers a matching 401k, then use a portion of your 10% to go into that retirement fund and a portion to go to your savings account.
- Create a list of short and long-term financial goals. Assign a specific amount and a specific due date to each of those goals. Focus on building your $1000 emergency fund first, then on having 1 full month of living expenses set aside, and then, ideally, on having a 3-6 month living expenses fund.
Today's tip brought to you by Mvelopes and Money4Life Coaching.