Can you really save half of your income? The mere thought of doing this sounds like something out of a movie. With all of these bills, retirement planning, the ten percent savings rule, insurance contributions and taxes, it would be quite a challenge.
Is it really possible to find a solid personal finance strategy to save half of your income when there are so man other things to worry about?
When there’s a will, there’s a way. Right?
Let’s look at my current situation as an example. The largest proportion of my salary goes towards bills. But, that’s only because I split up my annual bills (e.g. property loan, property taxes, medical check-ups, dentist, optician etc.) and contribute towards each of them monthly. I currently save my salary at the credit union, a registered retirement savings plan and emergency plan and a few other methods.
Could I save half of my income? I would need a bigger salary (teehee) or I would have to get rid of the property loan.
In this week’s round up, these articles offer some worthy suggestions on how you can save half of your income. Are you willing to take the challenge?
1. A Bulletproof Way to Save Over 50% of Your Income
Although this post is over a year old, it is a very well written post that clearly lays out how you can save half of your income. If you’re single and not planning on starting an family, then you may be able to save more than 50% of your income. But if you want to start a family, you might have to be a bit more savvy and creative.
2. I Saved 50% of My Income For a Month
Are you determined to save 50% or more of your income, then you can be comfortable in knowing that it’s not impossible. This writer was inspired by Brandon, the Mad Fientist and set about to tackle this challenge, whilst living in New York City. Her experience proved that it you want something bad enough you will try your best to get it.
3. 6 Simple Steps to Save 50% of Your Income
Saving money is not difficult at all. But saving 50% of my income is another idea. This article lists six simple steps for saving half of your income which can work for both single and married people. Some of the suggestions include having an idea of your pay cheque so that you can make a plan, creating a budget and finding additional income.
4. How to Save Half of Your Income
The trick to saving half of your income is to make saving a part of your lifestyle. You should also try to earn more money by looking for a higher paying job or a part time job, if you can handle it. Watching your credit spending is also mentioned because it is additional debt that you really don’t need.
5. How I Save 50% of My Income (And How You Can Too)
Living on 50% of your income when you make an average salary is possible. The key to setting and forgetting half of your income is to basically ignore society and its norms. Taylor from the Freedom From Money blog provides an excellent example of what you should do to save half of your income. My favourite tidbit from this article is the creation of a “miscellaneous” budget category which can be used to spend on little things that aren’t quite emergencies.
6. How Much Money Do You Need to Make in Order to Save Half Your Income?
Is there a magic salary that one needs to make in order to save 50% of one’s income? I don’t believe that there is a standard salary for each person, because everyone’s situation is different. Although this article links to a paid e-course, the modules basically tell you what you should be focused on – living on a shoestring budget, increasing your income, where to put your money when you’ve saved it and how to stay motivated and save half of your income in the long term.
7. How to Save Half Your Income
Saving half of your income comes down to five steps: finding out your magic number, cutting expenses, finding ways to make more money, finding the right place to save and keep it going for the rest of your life. The challenge is changing the habits that you’ve become so accustomed to. This article also links to the Save50 course which helps people save half of their income.
8. The Incredible Power of Saving 50 Percent
It’s described as a “radical money-management idea” that is extreme, abnormal and growing in popularity. People love it because it offers peace of mind and flexibility, provides opportunities to get rid of debt faster, pay for college tuition and fund retirement accounts. It’s popular with middle class households who can live on one income, boost their income, focus on big wins and target recurring costs.
9. Can You Imagine Saving 50% of Your Income? It’s Possible Right?
Saving half of your income is hard work and requires sacrifice! But, if your goals are on your mind, then the sacrifice will be worth it. David Rae, a Certified Financial Planner, saved 50% of his income by lining up his big expense with his salary, taking advantage of tax breaks, finding bargains (including couponing) and cutting back.
10. What’s it Like Saving 50% of Your Disposable Income? My 6 Reflective Thoughts
If you want a first hand account of what it feels like to save half your income, then you have to read this article. It explains how the author had to grapple with people who did not understand why he was saving and their views that he was missing out on life. But, he saw it as a positive experience where he was able to prioritise, explore possibilities for his increasing wealth and stay motivated to work towards his goals.
Are you looking for a good financial book to read? Start with the Wealthy Barber. It’s easy reading and has some simple steps to get you started on your personal finance journey.