I’d like to try saving half my income starting in October. My budget is actually set up where I can live off half a month’s income. Even though I am salaried we get paid every two weeks. Keep reading to see how I plan on saving half my income.
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I have a few financial goals that I am working on right now. They all would require me to save a bit of money from my income. I normally live a frugal life, even though I splurge sometimes. Now that we have this situation where we can’t do much of anything I’ve taken to saving even more.
I wanted to try saving half my income for the next few months. This will allow me to reach some of my smaller savings goals within one year.
How will I be saving half my income?
I normally get two paychecks every month. My budget allows for regular bills, normal spending, and a little bit of splurging. My goal is to save half of what I make every month. The way I plan to do this is simply to use the first paycheck for daily living. The second paycheck will go into savings.
I will move the second paycheck into my Ally savings account. This is the account I use to save for short term goals. I do not have a debit card for this account, making it difficult to access. It also has a higher interest rate than my regular savings account. This higher interest rate means I will earn more on my deposits as well. I will be able to reach my other goals faster with the compounded interest.