The recession may be technically over, but it doesn”t always feel like it. People are still pinching pennies and looking for ways to save. Make an impact on your spending and create a monthly household budget that includes putting money away in savings.
According to most finance experts, an ideal budget would divide your income like this:
- 30% rent/mortgage
- 26% living expenses
- 25% taxes
- 15% savings
- 4% insurance
But if debt and other financial setbacks are derailing your plans to keep up that budget, try other ways to save money. You can start by paying yourself first and putting at least 10 percent of your paycheck away in savings. Or, carry the money you”ve allotted in your budget for personal spending in cash. That way, you can”t overspend and you”ll be forced to monitor your spending.
If all else fails and your savings account isn”t getting any fatter, set up a monthly automatic withdrawal from your checking account to your savings. Contact your bank for details.