Tis the season! Tax season that is! Tax day is a frustrating day for most people. I always take this time of year to reassess my financial situation. I am proud to say I have been on a savings plan for some time now. It puts my mind as ease knowing I have some money put away for a raining day.
It’s been said that finances is a big contributor to divorce. I believe one’s financial state is a contributor to personal growth. I also believe there is not a single person out there that wished they had more money. My father-in-law taught me that it’s not about how much money you have, but rather how much money you save.
In order for you to save that pot of gold remember this easy rule 50-30-20. Fifty percent of your income goes to the needs you have each month. If you read the Basic Budget article, you have a guide to what items qualify as your monthly needs. Thirty percent goes to your spending each month and 20 percent should go into your savings.
Once you’ve calculated how much 20 percent of your income totals, use this Savings Spreadsheet to track your savings each month. It is so rewarding to see the amount grow each month. When times get hard and you want to tap into this saving fund keep reminding yourself of your financial goal. Imagine yourself having your saving amount in the bank and imagine how you will feel accomplishing that goal you’ve set for yourself.
Helpful Hint: It’s all about how much you have saved.