Advertising
Advertising

Effective Saving from spending ony 60%

Effective Saving from spending ony 60%

Spending is easy, saving is hard. Budgeting sometimes work for people, sometimes it just bears time. Richard Jenkins had experience, and by analyzing his spending pattern, he sees a solution. He determines to keep his comitted expenses at or below 60%. Then he plans his remaining 40% income on different type of spending:

After analyzing our spending patterns over the past couple of years using our Microsoft Money data file, I determined that we needed to keep our committed expenses at or below 60% of our gross income to come out ahead at the end of the month.

Committed expenses:

* Basic food and clothing needs.

* Essential household expenses.

* Insurance premiums.

* Charitable contributions.

* All of our bills — even such non-essentials as our satellite TV service.

* ALL of our taxes.

I’m not saying that 60% is a magic number. It’s a workable goal for my family, and it’s a nice round number. But your number might well be a bit higher or lower. At any rate, it’s a good place to start.

It is also interesting to see his plan on dividing his saving into different categories, such as retirement savings, long term savings, short-term savings/irregular expenses, and fun money.

A simpler way to save: the 60% solution – [MSN Money]

More by this author

Leon Ho

Founder of Lifehack

Book summary: A Technique for Producing Ideas Finding Your Inside Time 10 Ways to Extend Laptop Battery Life Bob Parsons on His 16 Rules for Survival Free note taking templates and techniques

Trending in Lifehack

1 The Lifehack Show Episode 8: On Personal Success 2 How to Stop Procrastinating: 11 Practical Ways for Procrastinators 3 The Lifehack Show Episode 6: On Friendship and Belonging 4 Why Do I Procrastinate? 5 Root Causes And How To Tackle Them 5 The Power of Tapping into Your Hidden Creativity

Read Next

Advertising
Advertising
Advertising

Last Updated on September 22, 2019

The Lifehack Show Episode 8: On Personal Success

The Lifehack Show Episode 8: On Personal Success
In this episode of The Lifehack Show, we interview Robert Glazer, who is the founder and CEO of Acceleration Partners, and author of the book Elevate: Push Beyond Your Limits and Unlock Success in Yourself and Others.

Robert shares with us how capacity building can radically improve your life and how his new book acts as a guide to getting started.

    Robert Glazer

    Episode 8: On Personal Success

    Also available on Apple Podcasts 

    Featured photo credit: Austin Ban via unsplash.com

    Read Next